Forex Flash: Bund prices static and overbought – RBS

FXstreet.com (Barcelona) - “Bund’s trading range of 142.80 – 143.50 remains in place with more likelihood of a correction, as the price rejected the 143.52/58 resistance, and momentum remains overbought.” notes Technical Strategist Dmytro Bondar at RBS.

According to Bondar, “The yield also lies near a key level of 1.32% being the 161.8% retracement from September 2010 - February 2011 selloff. Given momentum oscillators’ signals, it appears there are more chances of a correction, as the slow stochastic formed a negative crossover in the overbought region, while MACD histogram is showing a negative divergence with the price action. Hence, favor selling rallies, as a pull back to 142.60 onto 142.00 looks likely.”

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