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17 Jun 2013
Flash: Bund recovery likely once 143.94 resistance broken – RBS
FXstreet.com (New York) - Last week’s Morning Star (using a blending technique) coupled with the rejection of 141.96 and a bullish turn in the slow stochastic oscillator points to a good chance of recovery for the week.
However, according to Technical Strategist Dmytro Bondar at RBS, “The main caveat to this trend is for Bunds is the 143.94 level (formed by a few Fibonacci retracements), specifically if it gets broken. If so, the main resistance levels would be 144.55 and 145.00 and ultimately 145.43.”
There might also be an initial reaction from the 143.94 level (today), but the short-term view would remain bullish once above 142.95. “The long-term view however remains negative, so if a bounce materializes, it would be seen as a L/T selling opportunity.” Bondar adds.
However, according to Technical Strategist Dmytro Bondar at RBS, “The main caveat to this trend is for Bunds is the 143.94 level (formed by a few Fibonacci retracements), specifically if it gets broken. If so, the main resistance levels would be 144.55 and 145.00 and ultimately 145.43.”
There might also be an initial reaction from the 143.94 level (today), but the short-term view would remain bullish once above 142.95. “The long-term view however remains negative, so if a bounce materializes, it would be seen as a L/T selling opportunity.” Bondar adds.