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17 Apr 2015
Bunds remain constructive to 0.02% - RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, remains of the view that Bunds remain constructive to 0.02% and potentially negative levels.
Key Quotes
“The market reached our key target area of 0.13% and went through the level, indicating there will be scope for reaching the 0.02% yield level and potentially negative yields. The futures price has also reached my first target of 159.53 and remained in a strong uptrend above the 20-day MA without any reversal signals.”
“Therefore, I believe the key target of 160.88 will easily be reached, from where, after a potential correction, there will probably be further upside pressure to 161.72 amid a previously formed Methods continuation pattern on the futures chart (over the period of 10-18 March).”
“The long-term MACD oscillator remains constructive, as it negated the price-oscillator divergence, leaving us bullish on the market towards 0.02% and potentially -0.08% and -0.13%. A sustained break above 0.17% (or futures breaking below 20-day MA) would require view re-assessment.”
Key Quotes
“The market reached our key target area of 0.13% and went through the level, indicating there will be scope for reaching the 0.02% yield level and potentially negative yields. The futures price has also reached my first target of 159.53 and remained in a strong uptrend above the 20-day MA without any reversal signals.”
“Therefore, I believe the key target of 160.88 will easily be reached, from where, after a potential correction, there will probably be further upside pressure to 161.72 amid a previously formed Methods continuation pattern on the futures chart (over the period of 10-18 March).”
“The long-term MACD oscillator remains constructive, as it negated the price-oscillator divergence, leaving us bullish on the market towards 0.02% and potentially -0.08% and -0.13%. A sustained break above 0.17% (or futures breaking below 20-day MA) would require view re-assessment.”