Forex Flash: Bunds find support at 20-day MA – RBS

FXstreet.com (Barcelona) - Bunds found support at the 20-day MA after having a correction to 144.91 Fibonacci projection from the February 13 – March 4 impulse wave. According to Technical Strategist Dmytro Bondar at RBS, “Retracements from this move proved to provide key level for the last few weeks. It is important to note that the recent price action does not form a Head and Shoulders pattern due to a downwards sloping neckline.”

“The main pivot on the upside is 145.96. Upon breakout, I would expect the market to re-test 146.43 (161.8% projection) and extend the rally to 147.00. Caveat would be a sustained break below the 20-day MA (on close).” Bondar adds. It currently stands at 145.14.