Tony Sycamore, Director of TECHFX TRADERS, says the US 10-year yield is in the middle of a corrective rally and will shortly resume its downtrend.
Sycamore’s analysis, based on Elliott Wave theory, labels the current rally as a Wave iv bounce with a target of around 1.98%. After this, he expects to see a downwards Wave v and a retest of the 1.42% August low.
UPDATE, 17 November 2019:
The US 10-year yield appears to have completed wave iv at the 1.98% target. Sycamore says a closing break below support at 1.80% would provide further confirmation that the corrective rally is complete and that the downtrend has resumed, targeting a retest of the 1.42% August low.
See Chart 2.