2 Feb 2015
Bunds remain bullish to 0.22%; may see some resistance at 0.31% - RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, shares the technical outlook for Bunds, noting that the market has entered the as expected new bullish swing towards 0.22%.
Key Quotes
“The market entered a new bullish swing to the next major resistance level of 0.22%, as we expected would happen after the 0.44% - 0.57% range breakout. The level is the full 200% Fibonacci retracement from May – Sep 2013 impulse wave.”
“The 0.22% target level would most likely see a strong reaction and potentially end the trend. It may still take a couple of weeks to get there, as there is also a minor resistance at 0.31%, but as the weekly MACD chart remains bullish, I believe there is a high probability of yield testing the level before a potential reversal takes place.”
“Caveat would be a sustained break above the 5-week moving average, which would require view re-assessment.”
Key Quotes
“The market entered a new bullish swing to the next major resistance level of 0.22%, as we expected would happen after the 0.44% - 0.57% range breakout. The level is the full 200% Fibonacci retracement from May – Sep 2013 impulse wave.”
“The 0.22% target level would most likely see a strong reaction and potentially end the trend. It may still take a couple of weeks to get there, as there is also a minor resistance at 0.31%, but as the weekly MACD chart remains bullish, I believe there is a high probability of yield testing the level before a potential reversal takes place.”
“Caveat would be a sustained break above the 5-week moving average, which would require view re-assessment.”