19 Jul 2013
Flash: Bunds 100-day MA under pressure – RBS
FXstreet.com (New York) - Technical Strategist Dmytro Bondar at RBS identifies the short-term trend analysis of Bunds.
100-day MA in focus after 143.95 retracement
According to Bondar, “The 143.95 retracement was taken out, as the price action continued to pressure 100-day MA, suggesting more upside will be likely. Similarly to Treasuries, there is an inverse H&S on the chart.”
However, “in this case the pattern is less convincing, as the neckline has been above most of the price action (in other words, it was too steep). Nevertheless, it does leave the pattern intact, suggesting that 144.93/145.45 can be re-tested once 144.30 is broken.”
“Overall, major resistance levels stand at 144.30, 144.93, 145.45 and 146.12. A break below 143.00 makes the market bearish.” he adds.
100-day MA in focus after 143.95 retracement
According to Bondar, “The 143.95 retracement was taken out, as the price action continued to pressure 100-day MA, suggesting more upside will be likely. Similarly to Treasuries, there is an inverse H&S on the chart.”
However, “in this case the pattern is less convincing, as the neckline has been above most of the price action (in other words, it was too steep). Nevertheless, it does leave the pattern intact, suggesting that 144.93/145.45 can be re-tested once 144.30 is broken.”
“Overall, major resistance levels stand at 144.30, 144.93, 145.45 and 146.12. A break below 143.00 makes the market bearish.” he adds.