Bunds: Further upside after a correction - RBS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Dmytro Bondar, Technical Analyst at RBS, suggests that the Bunds market has reached their long-term target of 0.16% from the Head and Shoulders pattern formed over the period of Apr – Jul 2015 and indicated there will be further upside after a correction to 0.05%.

    Key Quotes

    “This is due to a bull flag triggered, which has it measuring targets at 0.13%, 0.05% and -0.08%. the most important level here is the 161.8% projection, which is the same level as the previous low, ie.. 0.05%.

    It is quite common that after testing the 1st target (0.13%), the market has a correction back to the area where the flag was triggered, i.e. 0.28% - 0.30%. I believe this is going to be the case for the next week and the market will have a correction to at least 0.28%.

    After that, the market will be expected to resume its bullish pressure towards the bull flag targets of 0.13%, 0.05% and ultimately -0.08%.”
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