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4 Jun 2013
Flash: Bunds require close above 100-day MA as risk abounds – RBS
FXstreet.com (Barcelona) - Bunds tested the risk level of 143.00, though they had a strong reaction and closed above 100-day MA of 143.53.
However, “a weak opening today brings some worries to our bullish call. Need to see a sustained recovery above 100- day MA to increase the confidence in our call. The risk level remains 143.00 (a sustained break would cancel the view).” notes Technical Strategist Dmytro Bondar at RBS.
Overall, “We are long from 143.30/40 to 144.68 onto 145.11 stopping on a break below 143.00 on a sustained basis. In the long term, as the 145.11 region is reached, I would favor selling amid cross-market signals from the treasury market – the risk level is 146.22.” Bondar adds.
However, “a weak opening today brings some worries to our bullish call. Need to see a sustained recovery above 100- day MA to increase the confidence in our call. The risk level remains 143.00 (a sustained break would cancel the view).” notes Technical Strategist Dmytro Bondar at RBS.
Overall, “We are long from 143.30/40 to 144.68 onto 145.11 stopping on a break below 143.00 on a sustained basis. In the long term, as the 145.11 region is reached, I would favor selling amid cross-market signals from the treasury market – the risk level is 146.22.” Bondar adds.