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14 Feb 2013
Forex Flash: Bunds could dip to 141.50 – RBS
The selloff in bunds broke the risk area of 141.93, although the prices ultimately closed above the main support level. In addition, “the 76.4% retracement from the January-February impulse wave of 141.86 has been penetrated, suggesting there might be more weakness to the 141.60/48 region.” writes Dmytro Bondar, a Technical Markets Strategist at RBS.
Overall, “momentum is pretty neutral as the 20/5/5/3 slow stochastic remains in the middle of the range, but started to form a negative crossover. After a bounce to the 142.30 region where the middle of yesterdays candle body and 50% retracement from January-February impulse wave lies, another dip to 141.60/48 looks possible.” Bondar warns.
Overall, “momentum is pretty neutral as the 20/5/5/3 slow stochastic remains in the middle of the range, but started to form a negative crossover. After a bounce to the 142.30 region where the middle of yesterdays candle body and 50% retracement from January-February impulse wave lies, another dip to 141.60/48 looks possible.” Bondar warns.