26 Jul 2013
Flash: Bunds grounded in support – RBS
FXstreet.com (New York) - Technical Strategist Dmytro Bondar at RBS analyses the short-term trend of Bunds.
Key quotes
“The market found support at the 142.43 retracement and opened with a bullish gap today, pointing to a good chance of a Morning Star candlestick pattern formation should the close be above 142.47.”
“Therefore, if the morning star is confirmed, the bias will be for an initial rally back to 143.15. If the latter is broken, expect retesting of 144.20/30 and then the main targets of 144.93/145.45 before a major reversal takes place in late August.”
“The big picture still suggests 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. 10-yr Treasuries chart have an inverse head and shoulders pattern with the targets of 128-09 and 129-07.”
Key quotes
“The market found support at the 142.43 retracement and opened with a bullish gap today, pointing to a good chance of a Morning Star candlestick pattern formation should the close be above 142.47.”
“Therefore, if the morning star is confirmed, the bias will be for an initial rally back to 143.15. If the latter is broken, expect retesting of 144.20/30 and then the main targets of 144.93/145.45 before a major reversal takes place in late August.”
“The big picture still suggests 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. 10-yr Treasuries chart have an inverse head and shoulders pattern with the targets of 128-09 and 129-07.”