FXStreet (Barcelona) – Dmytro Bondar, Technical Analyst at RBS, expects a 0.65% – 0.94% range to remain in place for bunds, and notes that risks of a bear flag formation exists.
Key Quotes
“The market remains rangebound within the 0.65% 0.94% range, as there are a few conflicting signals emerging: initially formed Head and Shoulders pattern (formed over the period of 03 – 12 June) seems taking too long to materialise, whereas a daily chart sees a potential bear flag pattern, which would come into play should a break below 150.45 occur. In this case, a move back to 148.80 area and potentially below may be expected. Contrary, a sustained price action above 150.96 leaves the room for H&S targets to be reached, implying a move to 154.20 (yield wise 0.65% and potentially lower to 0.47%).”
(Market News Provided by FXstreet)