26 Jul 2013
Flash: Bunds look to 142.43 support – RBS
FXstreet.com (New York) - Technical Strategist Dmytro Bondar at RBS identifies the short-term trend analysis of Bunds.
Key quotes
“Long US versus Germany remains a major technical theme on a good conviction. Although I was wrong in anticipating Bunds moving beyond 144.30 straight after the breakout, as the market retreated from the 144.20/30 resistance region and slow stochastic turned negative in the overbought region.”
“The big picture still leaves the possibility of recovery in the short-term amid an inverse H&S on the Treasuries chart, where the pull back was simply a return move to the neckline level.”
“It suggests that 144.93/145.45 can still be re- tested before a major reversal takes place in late August. Bunds are getting support at 142.43 retracement, where they could bounce back to 143.15. If the latter is broken, expect re-testing of 144.20/30.”
Key quotes
“Long US versus Germany remains a major technical theme on a good conviction. Although I was wrong in anticipating Bunds moving beyond 144.30 straight after the breakout, as the market retreated from the 144.20/30 resistance region and slow stochastic turned negative in the overbought region.”
“The big picture still leaves the possibility of recovery in the short-term amid an inverse H&S on the Treasuries chart, where the pull back was simply a return move to the neckline level.”
“It suggests that 144.93/145.45 can still be re- tested before a major reversal takes place in late August. Bunds are getting support at 142.43 retracement, where they could bounce back to 143.15. If the latter is broken, expect re-testing of 144.20/30.”