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5 Apr 2013
Forex Flash: Bunds look neutral ahead of strong resistance – RBS
FXstreet.com (Barcelona) - Bund trends remain in place with a new support gained at the 145.80 level, being the 161.8% Fibonacci projection from the February-March 2013 impulse wave. However, it faces a strong resistance at 146.80/90, where several projected Fibonacci levels lie (e.g. the full 200% projection of the February-March 2013 move).
According to Technical Markets Strategist Dmytro Bondar at RBS, “Momentum tools are pretty neutral, as overbought conditions are not meaningful in a strong trend environment. Therefore, unless a clear bearish divergence develops, there seem to be no reasons to fade the trend. The price heads towards the 146.90 resistance, where there might be an initial reaction leading to a consolidation within the 146.20 – 146.90 region. Once the 146.90 resistance is broken, the next targets would be 147.63, 148.09 and 148.44.”
According to Technical Markets Strategist Dmytro Bondar at RBS, “Momentum tools are pretty neutral, as overbought conditions are not meaningful in a strong trend environment. Therefore, unless a clear bearish divergence develops, there seem to be no reasons to fade the trend. The price heads towards the 146.90 resistance, where there might be an initial reaction leading to a consolidation within the 146.20 – 146.90 region. Once the 146.90 resistance is broken, the next targets would be 147.63, 148.09 and 148.44.”