I am a chartist. I do not attempt to understand macro economics. The charts provide possibilities and probabilities, not predictions of certainties.
The German Bobl (5-Yr Bond) is forming a H&S top on the weekly graph. I will refer to this pattern in the future as the Merkel Bobl Head Top. The Bobl is traded on the Eurex with excellent volume (avg. of 450,000 contracts per day).
A decisive close below 122.00 would complete the top and indicate a target of 116.75. A 100 point move in the Bobl represents EUR1,000.