Bonds rolling over but what's up with $TNX?#Bond #yield has been moving well lately, but today. SO FAR, they're rolling over, and some hurting more than others.
We've mentioned that steam has been running out for some time. Look @ the RSI negative divergence on almost all of the #yields
6M weakening.
1Yr RSI CRATERING.
2YR hurting & RSI DECIMATED It is at major support.
TVC:TNX is the lone wolf. Must keep👀on this one to see how it plays out.
See data posted. Did the 10Yr peak already?
Interstrates
Gbpjpy shortGBPJPY is preparing for a very good sell position and I am entering within the specified range
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CAD/JPY Buy Set Up Update Since my last video, CAD/JPY, has pushed above ¥100.00 on the exchange rate.
We now have the Bank of Canada talking about the possibility of 0.75% rate hikes, as inflation hit 6.70% this week, far above economists forecast for a rise to 6.10%.
The Bank of Japan maintains its stance to use yield curve control to keep interest rates low, sighting low inflation expectations over their forecast horizon.
The interest rate differentials between Canada and Japan continue to widen, supporting further strength in the Canadian Dollar.
With Oil prices remaining elevated, the commodity-linked currency could continue to strengthen against the Japanese Yen.
INVESTOR OUTLOOK, DEFENSIVE OR OFFENSIVE?We are still in a pullback area in the SPX , and we are very close to lows . That prompted me to investigate what are people doing , are people long or bearish the SPX. With further investigation, This ratio shows that a sector rotation out of Staples into energy is not underway , far from it. I hence think that the lows in the SPX are going to hold.
EURUSD UncertaintyCurrently, the sentiment of the pair seems to be clearly inclined to a down movement of the price. But we should rather wait until Friday to find out more about what will be the real direction of the pair.
Note that the US is strongly considering a hike in interest rate which can cause the USD to grow much stronger.
However, the France is currently on crosshead of most European traders. Le pen is one step ahead against his opponent. Her winning the presidential election will be crucial for the Euro and combined with the increase in the FED Interest rate we can almost definitely conclude that the EURUSD pair will undergo a downfall.
AUDUSD - Long biasedAUDUSD has been in a massive bear market for over almost 4 years, the FED has been kicking the interest rate can down the road and has got quite tiresome to say the least, USD on the DXY look very bearish now.
We are looking at this as follows:
Pullback to value, get long on good technical signal.
Even if there is a rate hike it's gonna be down.Here is my view,
So, predicted rate hike is 0.25 basis points more. i really don't think fed will hike more than 0.05 -0.10 basis points. so overall i think it would create negative impact on dollar as it wont come out expected. plus s&p broke monthly channel so overall i am negative for dollar and positive for bullions.
all the best everyone stay safe.