Forex Flash: Bunds eye recovery movement to 143.70/44 – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “Bund prices have broken the main obstacle of 143.15/18, which kicked in the inverse head and shoulders pattern, which combined with a weekly bullish engulfing suggested recovery to the next pivot points of 143.70/144.00 and 145.00.”

As such, “These 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. Our primary stipulation is a sustained break below 142.00.” Bondar adds.