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10 Apr 2015
Bunds might see a correction, but remains constructive for 160.04 – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, views that bunds might correct lower, having reached the target at 159.53, but remains constructive for an upside move towards 160.04.
Key Quotes
“The market approached our key target area of 0.13% and price target of 159.53, as the futures chart indicated there may be a correction from here, as momentum started to fade and candlesticks saw a classic Doji star developing (a trigger for correction would be a negative close today, forming a reversal pattern).”
“This however does not alter the overall constructive view as long as the market remains above the 20-day MA.”
“Given a previously formed Methods continuation pattern on the futures chart (over the period of 10-18 March), I believe that the price will see a further swing to 160.04 and possibly 160.88 after a correction (to most likely the 158.70 support) is completed.”
“The long-term MACD oscillator remains constructive, but starts to form a divergence, which leaves us bullish on the market towards 0.13% for the time being with further upside being determined by a test of the 0.13% target (159.53 futures resistance). If broken, there may be even more upside to the 0.02% yield level.”
Key Quotes
“The market approached our key target area of 0.13% and price target of 159.53, as the futures chart indicated there may be a correction from here, as momentum started to fade and candlesticks saw a classic Doji star developing (a trigger for correction would be a negative close today, forming a reversal pattern).”
“This however does not alter the overall constructive view as long as the market remains above the 20-day MA.”
“Given a previously formed Methods continuation pattern on the futures chart (over the period of 10-18 March), I believe that the price will see a further swing to 160.04 and possibly 160.88 after a correction (to most likely the 158.70 support) is completed.”
“The long-term MACD oscillator remains constructive, but starts to form a divergence, which leaves us bullish on the market towards 0.13% for the time being with further upside being determined by a test of the 0.13% target (159.53 futures resistance). If broken, there may be even more upside to the 0.02% yield level.”