9 Jun 2015
Bunds: near-term consolidation expected in the 0.70%-0.94% range – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, remains biased for a Bunds sell off towards 1.20% after a bullish correction, but near-term consolidation is expected.
Key Quotes
“The market sold off beyond the 0.92% support, opening the door for a 1.20% swing extension from the AprMay impulse wave. In the near term though, there may be a bullish reaction and consolidation in the 0.70% 0.94% range, with the next move determined by a break: if 0.70% is broken on a sustained basis, the market would be constructive again with 0.48% and possibly 0.21% targeted; but if 0.92% is broken on close (or 1.00% penetrated intraday), then the 1.20% resistance will be the main downside target.”
“My bias is that after a bullish correction to 0.70% (possibly an intraday dip to 0.65%), the market will sell off to 1.20%.”
Key Quotes
“The market sold off beyond the 0.92% support, opening the door for a 1.20% swing extension from the AprMay impulse wave. In the near term though, there may be a bullish reaction and consolidation in the 0.70% 0.94% range, with the next move determined by a break: if 0.70% is broken on a sustained basis, the market would be constructive again with 0.48% and possibly 0.21% targeted; but if 0.92% is broken on close (or 1.00% penetrated intraday), then the 1.20% resistance will be the main downside target.”
“My bias is that after a bullish correction to 0.70% (possibly an intraday dip to 0.65%), the market will sell off to 1.20%.”