Bunds breaking higher from a converging range – Commerzbank

FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes bund futures are breaking higher from a converging range, looking to retest the recent high at 159.54, with risks for a move higher.

Key Quotes

“Bund futures are breaking higher from a converging range. This suggests a retest of the recent high at 159.54, the risk is for a break higher to the top of its 7 year channel – this now lies at 159.96.”

“Above the 7 year channel at 159.96 we have the top of its short term channel is at 161.01.”

“The market is bid above 158.19, the base of a short term channel.”

“Key support remains the 156.36/156.10 2014-2015 uptrend and 55 day ma – a close below here will be needed to negate the long term bull move.”

“Above 161.01 lie the point and figure targets on the 60 and 240 minute charts at 163.40/80 and a Fibonacci extension at 163.87.”