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26 Jan 2015
Bunds on its way to 0.22% - RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, notes that the recent break from the 0.44%-0.57% range opens up the 0.22% target for bunds.
Key Quotes
“As expected, the 10-yr Germany ended its consolidation in the 0.44% - 0.57% range and broke below 0.43%, opening the 0.22% target.”
“The period of consolidation now appears over, as the correction stopped pretty much exactly at the 0.57% level of support (formed by the 161.8% retracement from the May – Sep 2013 impulse wave) and the yield posted a new low, confirming the formation of a new bullish swing to the next major resistance level of 0.22% target. The level is the full 200% Fibonacci retracement from May – Sep 2013 impulse wave.”
“In price terms, after breaking the 159.09 resistance, the next target would stand at 159.98 and 160.68 (168.2% and 161.8% from last week’s extremes).”
Key Quotes
“As expected, the 10-yr Germany ended its consolidation in the 0.44% - 0.57% range and broke below 0.43%, opening the 0.22% target.”
“The period of consolidation now appears over, as the correction stopped pretty much exactly at the 0.57% level of support (formed by the 161.8% retracement from the May – Sep 2013 impulse wave) and the yield posted a new low, confirming the formation of a new bullish swing to the next major resistance level of 0.22% target. The level is the full 200% Fibonacci retracement from May – Sep 2013 impulse wave.”
“In price terms, after breaking the 159.09 resistance, the next target would stand at 159.98 and 160.68 (168.2% and 161.8% from last week’s extremes).”