$FGBS under pressure. US/German 2y spread tightens -> #EURUSD up
First of all, this might be the driver for further EUR strength, which means EURUSD will trade much higher if the spread compression continues.
And dear Friends, there is obviously quite some room for the spread compression.
Upper-left chart -> Weekly US2y - Schatz spread:
- possibly a Head and Shoulders top
- bearish Heikin-Ashi signal
- Room to fall to 175-180 bps support in first round.
Once it trades below 160 bps, EURUSD will blow up to 1,20 or higher.
Upper-right chart -> Daily US2y - Schatz spread:
- Bearish Kumo breakout
- Bearish Heikin-Ashi signal with increasing momentum
- Below 197 bps room opens to 179 tgt
Lower chart -> German Schatz Yield:
- This is the component that is and will be driving the spread trade. First you just put on the spread, later short Schatz outright when signal confirms above -0,80 % yield.
- Ichimoku -> failed bearish breakout. Back to neutral
- Heikin-Ashi goves a sharp reversal signal. Time to build short position, size up when yield spikes above -0,79 % Kijun Sen and EWO changes to bullish (green)
Don't forget the MEGA SHORT above -0,70 % yield!!! -> that means a long term trendbreak and would probably bring a very quick blow up move to -0,20 % yield at least.
And dear Friends, there is obviously quite some room for the spread compression.
Upper-left chart -> Weekly US2y - Schatz spread:
- possibly a Head and Shoulders top
- bearish Heikin-Ashi signal
- Room to fall to 175-180 bps support in first round.
Once it trades below 160 bps, EURUSD will blow up to 1,20 or higher.
Upper-right chart -> Daily US2y - Schatz spread:
- Bearish Kumo breakout
- Bearish Heikin-Ashi signal with increasing momentum
- Below 197 bps room opens to 179 tgt
Lower chart -> German Schatz Yield:
- This is the component that is and will be driving the spread trade. First you just put on the spread, later short Schatz outright when signal confirms above -0,80 % yield.
- Ichimoku -> failed bearish breakout. Back to neutral
- Heikin-Ashi goves a sharp reversal signal. Time to build short position, size up when yield spikes above -0,79 % Kijun Sen and EWO changes to bullish (green)
Don't forget the MEGA SHORT above -0,70 % yield!!! -> that means a long term trendbreak and would probably bring a very quick blow up move to -0,20 % yield at least.
