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18 Feb 2013
Forex Flash: Bunds target 143.70 on emerging upside – RBS
According to Technical Markets Strategist Dmytro Bondar at RBS, “A weekly bullish engulfing on the continuation chart and closed 142.50 bearish gap suggests Bunds will be likely to see more upside for the next 2-3 weeks, as inverse head and shoulders looms on the daily chart.”
In addition, “These signals point to a high likelihood of recovery to the next pivot point of 143.70/144.00, formed by Fibonacci retracements and 13-week moving average, and above to the 145.00 region. However, a dip to the 142.30 region, as a reaction from neckline breakout, was seen as a temporary weakness, as discussed in the latest weekly. Moreover we note the caveat is a sustained break below the 142.00 level.” Bondar suggests.
In addition, “These signals point to a high likelihood of recovery to the next pivot point of 143.70/144.00, formed by Fibonacci retracements and 13-week moving average, and above to the 145.00 region. However, a dip to the 142.30 region, as a reaction from neckline breakout, was seen as a temporary weakness, as discussed in the latest weekly. Moreover we note the caveat is a sustained break below the 142.00 level.” Bondar suggests.