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2 Mar 2015
Bunds might see some near-term correction – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, notes that the recent break from the range has triggered the bull flag with 0.22% as target, but some near-term correction is possible.
Key Quotes
“Over the past week, we saw Bunds break above their range, triggering a bull flag rally to 160.00, which we flagged as a key target. The level was the exact high last week.”
“For now we think it is reasonable to expect some correction – to see support near flag area of 159.20/30, with further bullish swing to our next targets of 160.37 and 160.67.”
“The yield chart shows bull flag triggered with the key target of 0.22% (and possible dip towards 0.13%), as MACD weekly oscillator remains positive (without displaying any divergence with the price action), indicating that the yield may well extend the dip to our targets before the weekly MACD actually forms a negative turn.”
Key Quotes
“Over the past week, we saw Bunds break above their range, triggering a bull flag rally to 160.00, which we flagged as a key target. The level was the exact high last week.”
“For now we think it is reasonable to expect some correction – to see support near flag area of 159.20/30, with further bullish swing to our next targets of 160.37 and 160.67.”
“The yield chart shows bull flag triggered with the key target of 0.22% (and possible dip towards 0.13%), as MACD weekly oscillator remains positive (without displaying any divergence with the price action), indicating that the yield may well extend the dip to our targets before the weekly MACD actually forms a negative turn.”