Eurobund
EURO BUND : STRONG DOWNTREND | NEW TARGET POINT | SHORT ⚡️Euro climbs and German bund yields surge as ECB officials put July rate hike in play
The euro was stronger and the yield on the 2-year German bund surged after European Central Bank officials talked up the possibility of rate hikes as early as July. Luis de Guindos, vice president of the ECB, said, "from today's perspective, July is possible and September, or later, is also possible," while Governing Council member Pierre Wunsch told Bloomberg News said it's a "no brainer" to take rates to zero, or even positive territory, by the end of the year, unless the economy suffers a severe shock. Since the main ECB rate is negative 0.5%, taking rates to positive territory implies three hikes by the end of the year. The yield on the 2-year German bund TMBMKDE-02Y, 0.278% rose 11 basis points to 0.16%, while the euro EURUSD, 0.29% rallied 0.6% to $1.0924.
EURO BUND- Higher Yields Fueled by Inflation 💶There is a broad consensus out there for higher Bund yields, and we agree.
Euro zone bond yields ticked up again last week as inflation expectations rise.
Our updated chart shows that from a TA point of view we will need to break over the resistance at 173 and aim higher.
If this resistance is not breached over, we could experience a significant drop in the price of the euro.
ps. As the rate of one currency increases relative to another, investors are attracted to the higher yielding currency. Additionally, the cost of owning the lower yielding currency increase as the bond yield differential moves in favor of the currency that is sold. On our previous idea we are looking at a short on EURUSD .
Let it be no confusion:
Both EURBUND can rise and eurusd can drop at the same time, as eurusd is the euro in comparison to the US Dollar.
the FXPROFESSOR
Strong Consolidation in FGBL EURO BUNDAfter a long flag pattern, The FGBL is facing a consolidation after testing two times a resistance on the top which allowed the BCD pattern to form an ascending triangle. If the volumes are important, the increasing behavior will continue until breaking the upper resistance (in black) to reach the target (point D) which is the intersection between a recent support (joining the last bottoms) and a resistance that works well. So expect for next weeks a continuation in ascending behavior.
FGBL in an increasing hallwayHello traders,
The FGBL is growing in an upward trend. The hallway of growth limits the evolution of the FGBL.
So, what we expect is that the FGBL will continue playing inside that hallway, but in an increasing trend in long term.
If the FGBL breaks down the secondary support, it will decrease so that it bounces on the support S1.
But, if it can break the resistance S1, we can say it will leave that hallway in a new increasing trend.
EURO - Where the money in the Euro-Area flowsHere you can see where the money in the euro area flows. It is clear that a lot of money is flowing out of the euro area but within the euro area the safe havens are being sought. At the moment these are still the German government bonds and you can see that very nicely since March and yesterday's panic high of the Eurobund Futures. After a short consolidation, I expect more highs to Bundfuture.
That means a Lot more stress in the Euro- and Banking-system. Be careful with financials!
The idea published here serves for the time being as illustrative material and has yet to establish itself.
Greetings from Hanover
Stefan Bode
P.S. Press "Like" if you like it ;-)
BundFuture - Uncertainty prevailsThe BundFuture has a very high level of resilience and is likely to continue to decline until the first half of 2019. This indicates that a slight increase in interest rates on 10-year German Bunds is to be expected at least in the short term.
As of mid-2019, uncertainty in the euro-area should prevail again and thus demand for the "safe" harbour of-BRD-bonds rise and thus the 10-year-olds again slip below 0% interest rates.
After the completion of wave 5, a waterfall event should lead to a sharp increase in interest rates and over 1-2 decades to massive social upheavals.
Greeting
Stefan Bode from Hannover
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EUR/USD at decisive zone!Hello Traders,
today we want to share with you the FX:EURUSD as it currently flirts with our decisive zone. As we taking a look at the previous movements towards our reaction point, which is characterized by a clear momentum driven upwards sequence, we now need to be cautious about current continuation.
If we take a look at our inter-market indications, it shows that we are currently heading towards lower outflow levels. This however indicates interestingly a divergence with current movement as market continued to rise and our outflow basically (besides minor corrections) moved straight upwards after the FED rate decision and Netherlands elections. We currently take the ratio of FX:EURUSD vs. INDEX:DAX , TVC:GOLD and TVC:EUBUND . We always mention the important of inter market analysis to time our trades and the movement around reaction points better. As it seems that investors may take their profits at current reaction point which could lead to lower prices.
If we do not get a momentum driven daily or at least 4-hourly break to the upside, we might see some correction moves around current zone. First heading area will be around 1.077 and then 1.07 or even lower, if market reacts at current zone.
We wish you much success.
As always please use a stop loss while trading and take care.
To you success,
Secrets2Trade
Euro Bund in reversal zoneThe market have got into the possible reversal zone projected by Fibonacci external retracement levels. This zone also contains major and minor trend line cross. Fibonacci time extensions from last medium degree highs pivots as the wave B and wave 1 appear to match possible reversal day with in the wave (iii), and previous highs of wave (3) and wave 1 Fibonacci time extensions show that price is in zone of 138.2 - 161.8%.
As we expect the price to go into correction after reversal in previously discussed zone there is support zone of the correction end projected by Fibonacci retracement levels and pattern invalidation level.
This is the minor degree corrective pattern expected to follow. Thus we do not want to trade it. The idea is to wait and look closely for the correction to end and as it unfolds we can project smaller reversal zone of time and price zone.
Euro Bund will we get into correction?We can talk about all fundamental factors and how they can effect the bond prices and so on... But this monthly chart look like traditional Elliott wave pattern from the book. Now we see major impulse pattern have finished the 3 (blue) wave and shown first corrective wave. If the ECB will make unexpected moves it could force the last corrective wave down. There is support zone at the price 148.00 which is near Fibonacci retracement level 23.6% and price 135.00 near Fibonacci retracement level 50%.
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Best wishes for new incoming trading year! ;)