Chart 82: German 10yr bund yield —- weekly chart Chart 83: Japanese 30yr yield - weekly chart 2.250 i 4,500 . seal = 2.000 aes 4,000 a ee HE NX n \ oy he Se ee 1.750 7 ; 3,500 tl ih = en", Tne sin ee 1418 4 | OARS 3.000 A t pow £1333 4S 2.500 1 ; i : u \ ~~ #140bp al\ RY 2.000 61.80.88 nna 100080873 hf hy 1.500 | 61.84(0.710 Ko78 +93bp ae Sa 1000 +t 0.00.46) ‘ht Si 0.637 J ; i ae ies ono \i } 0.189 +108bp (pa Ss, wen (8) Lous +60bp from low ~~ 0500 ah — Ni ~~ ft - == . , 70:4784 Mh ap A 7 iter 63,3712 AS Man, ek AAP _ a vf Vl hy Mh, oA i Lal Ml WM fy ka AW AE TWA 7 iV \f \gt WA fo wa of 40, aida eiaeda: ieee” ak mma. ata 3100 es | ees ee a vu 200s 2009 | noon tot2s| 2003, || saoa | aes || 0m 2012 2013 2014 2015 2016 2017 Source: BofA Merrill Lynch Global Research, Bloomberg Source: BofA Merrill Lynch Global Research, Bloomberg Buy NZD/USD 5m .69/.66 put spread 1x1.5 NZD/USD is forming a head and shoulders top. It is breaking trend line support from the January to June lows. It is also threatening to break the neckline at .7070. MACD recently crossed bearish and is trending toward negative. This pattern suggests NZD/USD will decline as low as .6615. Given the strong USD move in G10 thus far, we think NZD/USD is near an attractive technical level to position for further USD strength. We recommending buying a NZD/USD 5m .69/.66 put spread 1x1.5 for 43 USD pips (off of .7100 spot). Chart 84: NZD/USD daily chart M™@NZD-USD X-RATE - Last Pr... MSMAVG (50) on Close 0.7229 MISMAVG (200) on Close 0.7021 H Pe 0.7500 rs i se Ss S sa im Pains 0.7400 ia ah, i ie | A a, Pil rt \ 0.7300 ‘ f . id aa a | H 0.7200 j ‘ f _—4 = 0.7100 — y 0.7000 i a 200d SMA 0.6900 oP Wacr 0.6800 9 I ts VV Kim 1 a 0.6700 uy I eile ees, mil e Wy | hci inn ——-~} —— -6615 0.6600 : \ | 0.6500 ™ 0.6400 0.6300 NzDUSD xpi 0.01 MMACD(12,26) -0.000' ws mSig(9) 3.0007 a . = 0.005 Diff -0.0016 oll ee att ence. AN A ritalin, sana tR 6.00 ce “tj "| ie i“ ™ La bil ai “ll = wig yee great ye _ | J 7 -0.005 NZDUSD MIRS