FXstreet.com (Barcelona) - According to Dmytro Bondar, a technical analyst at RBS, “Bunds generally relented towards their consensus path (i.e. a recovery from 140.0 onto 140.48) as the core markets still seem to remain supported in the near future amid momentum turning positive and sub-cycle of the main cycle shown on the chart coming into place.”

Indeed, “the high of the cycle coincided with the price trough telling us the sub-cycle is in full force, which implies more recovery is likely” However, for that to occur, the price needs to take out the 140.48 pivot point, suggesting the most probable ultimate target for this short-term recovery would be near 141.10.” Bondar adds.

“However, the next week is most likely to be choppy, as despite the positive signals above, long-term charts are bearish and the large H&S on a continuation chart might become the dominant theme.” he warns.