US/DE 2-Yr spread shows head and shoulders top

Russell Shor, CFTe, MFTA FXCM

The spread between the US 02-yr and the German 02-yr is showing a head and shoulder pattern. It is yet to break the neckline. This is very interesting, because if the pattern plays out there certainly will be a contraction in the spread which is likely to be EURUSD positive. We note that the RSI(9) is below 50 and the MAC histogram is ticking down.

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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