U.S. Dollar Rally Tests Limits as Treasury Yields Near Resistance

U.S. 10-year Treasury yields are nearing a crucial resistance zone with overbought RSI readings, according to StoneX Media Market Analyst Razan Hilal.

Rising U.S. Dollar Index prices, now testing new 2026 highs, are supported by increasing Treasury yields and the relatively restrictive Federal Reserve's monetary policy.

A bearish RSI divergence on the daily chart indicates fading upside momentum in Treasury yields.

This development raises concerns about a potential near-term reversal across yields, the U.S. dollar, and major currency pairs if 10-year yields break back below a key threshold.