5 Mar 2015
Bunds: consolidation before move towards lower yields – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, gives the technical outlook for Bunds, noting that the current consolidation will conclude in a move towards lower yields.
Key Quotes
“The market moved back to its range between 0.28% and 0.40% yield levels, as the futures corrected form the 157.80 target (Note: the level was 160.00 - updated due to the contract roll-over).”
“The yield has triggered a bull flag pattern and weekly MACD did not display negative divergence, suggesting that after this consolidation, the next move will be for lower yields.”
“With the caveat of a break above 0.44%, I believe the 0.22% target will be reached and potentially lower yields attained.”
“Futures should sustain above 156.00 and re- test 160.00 with upside break opening 160.67. A sustained break below 156.00 cancels the view.”
Key Quotes
“The market moved back to its range between 0.28% and 0.40% yield levels, as the futures corrected form the 157.80 target (Note: the level was 160.00 - updated due to the contract roll-over).”
“The yield has triggered a bull flag pattern and weekly MACD did not display negative divergence, suggesting that after this consolidation, the next move will be for lower yields.”
“With the caveat of a break above 0.44%, I believe the 0.22% target will be reached and potentially lower yields attained.”
“Futures should sustain above 156.00 and re- test 160.00 with upside break opening 160.67. A sustained break below 156.00 cancels the view.”