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

US

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.

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