31 Jul 2013
Flash: Bund reveal mixed signals – RBS
FXstreet.com (New York) - Technical Strategist Dmytro Bondar at RBS analyses the short-term trend of Bunds.
Key quotes
“Bunds didn’t rally to 143.00 and left the gap open pointing to a strong resistance region formed at 142.72, as markets wait for the FOMC.”
“A good support is observed at 142.00 and 141.86. There is pretty low conviction for Bunds direction at the moment due to mixed technical signals: a negative crossover in the slow stochastic and a pennant pattern formed over the last few days suggest a selloff is possible to 141.28 and 140.56 targets, also cross-market Euribor charts suggest more downside is possible.”
“On the other hand, a bounce from the 142.00/141.86 support and gap closure would be very positive pointing to 144.00 area targets, as Treasuries chart hints a rally is likely amid inverse H&S formation.”
Key quotes
“Bunds didn’t rally to 143.00 and left the gap open pointing to a strong resistance region formed at 142.72, as markets wait for the FOMC.”
“A good support is observed at 142.00 and 141.86. There is pretty low conviction for Bunds direction at the moment due to mixed technical signals: a negative crossover in the slow stochastic and a pennant pattern formed over the last few days suggest a selloff is possible to 141.28 and 140.56 targets, also cross-market Euribor charts suggest more downside is possible.”
“On the other hand, a bounce from the 142.00/141.86 support and gap closure would be very positive pointing to 144.00 area targets, as Treasuries chart hints a rally is likely amid inverse H&S formation.”