In addition to the previous post on US/German 2 year yield spread, here I show you how it could really work from the german Schatz sell side!
This chart shows the German 2 year Schatz yield.
- Long term trend is bearish, but the trendline is coming lower. Right now the break point is around minus 70 bps. (-0,70 %) - Ichimoku has BULLISH bias ahead: Senkou A is above Senkou B (positive forward Kumo). Tenkan is above Kijun, and both are slightly above spot could now. - Heikin-Ashi shows indecision at the -0,80 - 0,85 key support zone! Doji candle, haDelta+ and haOscillator are reversing up from their lows. - MACD crossed below the signal line, but it is still positive above zero. - EWO is positive too
It is not a bad risk reward to short Schatz at -80 bps in some medium size.
Here you can also observe a possibly building inverse Head and Shoulders pattern. If its neckline breaks, that would be in line with a trendline break too. Then my friends do not hesitate, just sell all size on FGBS you can allow to sell.