US 10-Year Yield Technical Analysis
The 10-year yield is the first place I am looking at here on Friday, and we are seeing the yields drop a bit. So that, at least in theory, could be a good sign for risk appetite. We’ll just have to wait and see. That being said, it looks like 4.6 % is a little bit of a barrier. And I think we will continue to see a lot of questions asked about whether or not we can continue to go to the upside here as far as rates are concerned.
EUR/USD Technical Analysis
Interestingly enough, even with the rates dropping a bit, we see the euro struggling against the US dollar. This tells me that there are still quite a few problems when it comes to the euro, and I suspect that eventually we go looking to the 1.12 level. We are in the middle of forming a bearish flag, and the EU, of course, has very sluggish economic numbers in general. The Federal Reserve is expected to raise rates later this year, and I think that’s one of the main drivers. That being said, though, the interest rate differential, regardless, is still favoring the US dollar.
Platinum Technical Analysis
Platinum looks like it is also struggling, although we are most certainly sitting in an area that’s been important in the past, with the $1,600 level being a massive area of demand. With that being said, I think you have to look at this as a market that is just simply grinding away here. Rallies at this point I still look at with significant suspicion. We’ve recently had the death cross about two weeks ago, and now we’ve just kind of gone sideways from there. If we were to break down below the $1,500 level, I think the bottom falls out.
Russell 2000 Technical Analysis
I’m watching the Russell 2000; it is trying to rally a little bit during the early part of the session, and if the Russell does fairly well, that bodes well for US indices in general, so keep that in mind. The 2950 level for me is still significant support. I like buying dips, but if we can tick off in the Russell, what I might actually do is buy some of the bigger indices.