Please note this is a weekly chart!
- Ichimoku: Neutral, with minor bearish bias ahead. Price is at equilibrium level.
- Uptrend is still valid, but trendline is quite close, matching bottom of spot Kumo cloud at 160+
- Heikin-Ashi candle and indicators show indecision for the second week. Swing bullish price action stopped at/below Kijun Sen
- EWO is back to zero, slightly bearish still.
We may see few more weeks (months?) of some choppy price action in the neutral zone. But if you read the news carefully, European fiscal stimulus starting from Germany will slowly become a reality. This means ECB will step back and will start normalizing rates this year. I guess you all remember what happened with US Treasury market last year... well, same will happen to the German bond curve.
European bond short is going to be one of the biggest trades of 2017! Just wait for the proper signal. Until hold only small short BOBL and Bund exposure.
- Ichimoku: Neutral, with minor bearish bias ahead. Price is at equilibrium level.
- Uptrend is still valid, but trendline is quite close, matching bottom of spot Kumo cloud at 160+
- Heikin-Ashi candle and indicators show indecision for the second week. Swing bullish price action stopped at/below Kijun Sen
- EWO is back to zero, slightly bearish still.
We may see few more weeks (months?) of some choppy price action in the neutral zone. But if you read the news carefully, European fiscal stimulus starting from Germany will slowly become a reality. This means ECB will step back and will start normalizing rates this year. I guess you all remember what happened with US Treasury market last year... well, same will happen to the German bond curve.
European bond short is going to be one of the biggest trades of 2017! Just wait for the proper signal. Until hold only small short BOBL and Bund exposure.
