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19 Feb 2013
Forex Flash: Bund upside looms following 143.15/18 resistance – RBS
According to Technical Markets Strategist Dmytro Bondar at RBS, “Bund prices reached a strong resistance region of 143.15/18 after forming a weekly bullish engulfing on the continuation chart and inverse head and shoulders looming on the daily chart.”
In particular, “These signals point to a high likelihood of recovery to the next pivot point of 143.70/144.00 and above to the 145.00 region once the first major resistance region of 143.15/18 is cleared. The levels are Fibonacci retracements and 13-week moving average. A dip to the 142.30 region, as a reaction from neckline breakout, was seen as a temporary weakness, as discussed in the latest weekly – a caveat is a sustained break below 142.00.” Bondar affirms.
In particular, “These signals point to a high likelihood of recovery to the next pivot point of 143.70/144.00 and above to the 145.00 region once the first major resistance region of 143.15/18 is cleared. The levels are Fibonacci retracements and 13-week moving average. A dip to the 142.30 region, as a reaction from neckline breakout, was seen as a temporary weakness, as discussed in the latest weekly – a caveat is a sustained break below 142.00.” Bondar affirms.