US 10 year yield cracks below its 100 day moving average

Technical Analysis

The US 10 year yield has fallen to a low of 3.408% today is currently trading at 3.448%. The move to the downside was strong enough to take the yield back below its 100 day moving average of 3.494%. The last time the yield traded below the 100 day moving averages back on August 19.

The move to the downside also fell below the swing high yields going back to June at 3.495%. On September 20, the yield moved above that level and based against it on September 21 before starting the climb to the high reached on October 21 at 4.335%

The 3.5% area was important in the past and the return to it has traders mulling the area again.

The question is “With the Fed looking toward 5% and potentially above to stop inflation, is 3.5% too low?”

The level will now be close resistance for traders.

On the downside, getting and staying below the 50% at 3.426% is the next downside hurdle.