“Bunds also broke a key level of 141.10 following payrolls, suggesting there would be more risks to the downside. However, the recent price action tells us the market remains well supported at the 141.10 region. A dip to this level and probably lower to 140.50/80 seems likely in the near term, as Bunds approach the cyclical low, but from there a range-bound theme with subsequent recovery would be expected.” Bondar adds.
Indeed, “the Bund sub-cycle points to today-tomorrow being the likely low for the market. Momentum remains overbought and most oscillators are showing negative divergence with the price action. Overall, I believe there is a scope to the downside for today and possibly tomorrow with a recovery staring after that.” he advises.