Although US 10y yields are currently capped by the 1.98/2.00% area, this is unlikely to derail the broader trend of US dollar strength. Several commodity currencies continue to show signs of weakness against the USD. On our online tool, TRENDS, the USD is overbought against most major currencies though still holds some upside potential on the USD/CAD cross. AUD/USD is also accelerating lower following its break below a narrowing range being formed for nearly two years, further underpinning the USD bullish sentiment.
Click here to read the full report: Technical Research
Barclays