21 Jan 2015
Bunds might consolidate before settling below 0.44% - RBS
FXStreet (Barcelona) - Analysts at RBS expect that Bunds might consolidate between 0.44%-0.57% for the next few days before settling below 0.44%.
Key Quotes
“The market remains bullish amid weekly MACD chart and the break below the 0.44% retracement, indicating there will be a good chance of reaching 0.22%, being the full 200% Fibonacci retracement from the May-Sep 2013 impulse wave.”
“However, for the next few days a consolidation within the 0.44 % – 0.57 % range should be expected before settling below 0.44% and subsequently moving South to the 0.22% technical target.”
“Caveat would be a sustained break above the 5-week moving average (currently at 0.50%), pointing to a correction to 0.57% with the latter being broken opening 0.68%. On the price chart, this pull-back coincides with a reaction from testing the 158.00 resistance area.”
Key Quotes
“The market remains bullish amid weekly MACD chart and the break below the 0.44% retracement, indicating there will be a good chance of reaching 0.22%, being the full 200% Fibonacci retracement from the May-Sep 2013 impulse wave.”
“However, for the next few days a consolidation within the 0.44 % – 0.57 % range should be expected before settling below 0.44% and subsequently moving South to the 0.22% technical target.”
“Caveat would be a sustained break above the 5-week moving average (currently at 0.50%), pointing to a correction to 0.57% with the latter being broken opening 0.68%. On the price chart, this pull-back coincides with a reaction from testing the 158.00 resistance area.”