22 Jan 2015
Bunds: consolidation to be followed by a move to 0.22% - RBS
FXStreet (Barcelona) - Analysts at RBS view that bunds might move towards 0.22% after consolidating between the 0.44% - 0.57% range.
Key Quotes
“The market has entered a correction phase (as we expected) and will likely consolidate in the 0.44% - 0.57% range before turning bullish again, as the weekly MACD chart remains bullish and the 0.44% retracement was broken, indicating there will be a good chance of reaching 0.22%. This would be the full 200% Fibonacci retracement from the May-Sep 2013 impulse wave. Caveat would be a sustained break above 0.57%, opening prospects for a deeper correction to 0.68% (not our view). On the price chart, this pull-back coincides with a reaction from testing the 158.00 resistance area. This should find support at 156.00.”
Key Quotes
“The market has entered a correction phase (as we expected) and will likely consolidate in the 0.44% - 0.57% range before turning bullish again, as the weekly MACD chart remains bullish and the 0.44% retracement was broken, indicating there will be a good chance of reaching 0.22%. This would be the full 200% Fibonacci retracement from the May-Sep 2013 impulse wave. Caveat would be a sustained break above 0.57%, opening prospects for a deeper correction to 0.68% (not our view). On the price chart, this pull-back coincides with a reaction from testing the 158.00 resistance area. This should find support at 156.00.”