FXstreet.com (Barcelona) - According to Dmytro Bondar, a Technical Strategist at RBS, “Bunds have not made much progress in the price action, which overall traded in a range below the gap of 141.57 – this level was expected to provide resistance, as the gap was filled but not closed. As such, this area remains the main pivot point on the upside.”
“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.
“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.
