Forex Flash: Spanish and Italian 10y both on the rise – RBS

FXstreet.com (Barcelona) - According to Dmytro Bondar, a Technical Analyst at RBS, “As expected, the Italian 10yr has formed an inverse head and shoulders pattern after rejecting the 4.94% level (the 150% Fibonacci projection from the Dec’11 rally), which suggests higher yields for the week targeting 5.31%/5.38% onto 5.53%, on the caveat of a sustained break below 4.93%.”

Furthermore, “The Spanish 10yr bonds seems to be forming a double-bottom movement with targets of 6.35% continuing towards 6.50%. We look for a sustained break below 5.54% to cancel this view. Additionally, we recommend setting up shorts as market entered our selling region of 5.56-5.70% targeting 6.05% onto 6.35% and 6.50% on a stop as a sustained break below 5.50%.” he suggests.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS