Mar 5, 2013
Forex Flash: Bunds eye correction despite long-term bullishness – RBS
According to Technical Markets Strategist Dmytro Bondar at RBS, “Bund prices formed a meeting lines reversal pattern after opening above the previous high, suggesting there would likely be correction for now.” Corrective targets include 145.00/144.90, possibly 144.50. “In the long term, the price formed a pennant pattern with the measuring target of 147.00 (flags fly at half-mast). We believe this target will be met after a possible correction from the 145.82 resistance. Resistance is expected at 145.82, 146.00/17, 146.37 and 146.67. Overall, favor being long to 146.00/17 onto 146.67 and 147.00 on a caveat of a sustained break below 144.5.” Bondar adds.