The yield on ten-year Treasury Notes is heading for another test of resistance at 3.00 percent after encountering buying pressure above primary support at 2.50. Bearish divergence on 13-week Twiggs Momentum, however, continues to warn of weakness. Breach of 2.50 is unlikely, but would offer a target of 2.00 percent. Breakout above 3.00 would signal an advance to 3.50 percent*.
* Target calculation: 3.00 + ( 3.00 – 2.50 ) = 3.50
The Dollar Index encountered strong support at 80, indicating another test of 81.50 is likely. Breakout would signal a primary advance to 83.00*. Recovery of 13-week Twiggs Momentum above zero would strengthen the signal. Reversal below 79.70 is unlikely, but would warn of a primary down-trend.
* Target calculation: 81.5 + ( 81.5 – 80 ) = 83