Back
15 Feb 2013
Forex Flash: Bunds look to get back on track in next 2-3 weeks – RBS
According to Dmytro Bondar, “the next 2-3 weeks are likely to be positive for Bunds, as the price has formed a bullish engulfing candlestick pattern on the weekly continuation chart and closed the 142.50 weekly bearish gap. Also, there is an inverse head and shoulders looming on the daily chart. These signals suggest a high likelihood of recovery to the next pivot point of 143.70/144.00, formed by Fibonacci retracements and 13-week moving average, and above to the 145.00 region.”
Moreover, there is a possibility of dipping to the 142.30 region, as a reaction from neckline breakout, though it is not necessary. The recent price action has seen a dip to the 142.00 support area, which was quickly rejected, as the market managed to recover to the 143.18 pivot point (the correction was technically anticipated and discussed in the previous weekly publication, although the dip was slightly lower than expected). “Daily and weekly momentum is neutral at the moment, no divergence or extreme conditions are seen on the major oscillators. Overall, I keep my bullish stance, targeting 143.70/144.00 onto 144.56/60 and 145.00. “ he adds.
Moreover, there is a possibility of dipping to the 142.30 region, as a reaction from neckline breakout, though it is not necessary. The recent price action has seen a dip to the 142.00 support area, which was quickly rejected, as the market managed to recover to the 143.18 pivot point (the correction was technically anticipated and discussed in the previous weekly publication, although the dip was slightly lower than expected). “Daily and weekly momentum is neutral at the moment, no divergence or extreme conditions are seen on the major oscillators. Overall, I keep my bullish stance, targeting 143.70/144.00 onto 144.56/60 and 145.00. “ he adds.