Break below 200 day MA this week failed
The German yields are higher in trading today. The 10 year yield is up 3.4 bps, but the 30 year is up 6 bps currently. That has taken the yield back above its 100 day MA. Earlier this week, the yield moved below trend line support and the 200 day MA (green line in the chart below). The 100 day MA is currently at 1.173. The yield is up to 1.179%
Technically, it looks like the momentum may be turning back to the upside. That - in and of itself - should be positive for the EURUSD. However, it does take two to tango and the US 30 year yield is up about 4.3 bps today. So that helps to neutralize that pull a bit (and there are other factors of course that impact a currency pair).
Looking at the 30 year US yield chart, the bond yields are still well below the 100 and 200 day MAs (blue and green lines in the chart below). The low this week could not take out the low from June (or get to the 50% retracement). A move back above the 2.783% (38.2% level) would give a more positive picture but the 100 day MA at 2.8622% currently, is a hurdle that needs to be broken and remain broken. The highs over the last 5 plus months have found resistance against that MA level.
Yields are moving up, but there is more work to do.
