FXstreet.com (Barcelona) - According to Technical Strategist Dmytro Bondar at RBS, “Treasury yields closed the gap at the 133-12/13, a key pivot point in determining whether the market has some steam to go higher. It has remained open since October 5 providing a strong resistance area.”
Moreover, “unless it gets closed, the market will be likely to pull back to the bottom of its recent range near the 133-01 retracement and 100-day MA at 132- 27+. Looking closer, the momentum is quite mixed, as the slow stochastic oscillator is forming a positive crossover, while MACD is clearly showing a negative divergence with the price action.” Bondar adds.
Finally, “the volume lightened as price advanced, which quite often precedes price corrections. Therefore, the bias is for the price to pull back to the bottom of the range at 132-28/133.01 on a caveat of a close above 133-13+.” he notes.
Moreover, “unless it gets closed, the market will be likely to pull back to the bottom of its recent range near the 133-01 retracement and 100-day MA at 132- 27+. Looking closer, the momentum is quite mixed, as the slow stochastic oscillator is forming a positive crossover, while MACD is clearly showing a negative divergence with the price action.” Bondar adds.
Finally, “the volume lightened as price advanced, which quite often precedes price corrections. Therefore, the bias is for the price to pull back to the bottom of the range at 132-28/133.01 on a caveat of a close above 133-13+.” he notes.
