Interest rates are crucial in the movement of currencies. The blue is EURUSD. Those things are not 100 percent correlated but it is something that needs to be paid attention to.
In this post I will demonstrate the relationship between French American bond yields (interest rates) differential and EURUSD.
We use 2 principal yields 2 yearly and 5 yearly composite differential.
As you see, once the yields differential hits the resistance or reversal level (here we use DeMark and Camarilla reversal levels) - there is a reaction in EURUSD. EURUSD keeps moving some 30 pips more (fakeout?) and then turns as well.
On weekly differential chart we see that the differential is at 0 level after a poor bullish breakout. There is also fractal pattern in play.
We also see DeMark monthly pivot squeeze on 60 min (DeMark squeeze predicts volatility and turns in the markets).
You may also use German yields instead of French ones - not much difference actually.
Both American and European yields are in their lowest levels. German ones dropped below 0.
In this post I will demonstrate the relationship between French American bond yields (interest rates) differential and EURUSD.
We use 2 principal yields 2 yearly and 5 yearly composite differential.
As you see, once the yields differential hits the resistance or reversal level (here we use DeMark and Camarilla reversal levels) - there is a reaction in EURUSD. EURUSD keeps moving some 30 pips more (fakeout?) and then turns as well.
On weekly differential chart we see that the differential is at 0 level after a poor bullish breakout. There is also fractal pattern in play.
We also see DeMark monthly pivot squeeze on 60 min (DeMark squeeze predicts volatility and turns in the markets).
You may also use German yields instead of French ones - not much difference actually.
Both American and European yields are in their lowest levels. German ones dropped below 0.