US 10-Year Yield Technical Analysis
The 10-year yield has jumped higher, which makes a certain amount of sense, given that the yields have jumped to the 4.6% level after the weekend saw an escalation of attacks on the Iranians by the Americans. Short-term pullbacks in the yield should open up the possibility of the risk appetite picking up, but keep in mind that this is a market that has shown consistently higher interest rates, and as a result, that does have a bit of an effect on certain assets.
CAD/JPY Technical Analysis
I’m also watching the Canadian Dollar against the Japanese yen because of the way oil is reacting to the attacks. This is one of my favorite currency pairs to trade when it comes to oil. The 115-yen level is an area that, if we can break above, I think we could go higher, and I’ll be watching that today to see if that happens. If we pull back, then I think we just continue the overall consolidation.
Copper Technical Analysis
The copper market fell a bit during the early part of the trading session on Monday as well, but has found a bit of support under the 50-day EMA. Longer term, from a structural standpoint, copper is still very bullish, and of course, the supply and demand part of the situation continues to favor upward pressure, and I do think that we make our way back to $6.50 eventually. It’ll be a bumpy ride along the way, as it typically is with copper, but I look at these pullbacks as buying opportunities.
CAC Technical Analysis
The CAC in Paris looks to me like an index that’s telling us today that it does not want to fall, so I’m looking to get involved and maybe ride this higher for the next couple of days. If we get a short-term pullback later in the day, that looks to me like a buying opportunity as the 50-day EMA has offered significant support. If we were to break below 8225, then we would possibly test the 200-day EMA. It will move, more likely than not, along with other indices around the world.