Forex Flash: Bunds eye upside, mindful of 200-day MA – RBS

The Bund market saw a gradual recovery and closed the 142.50 bearish gap from 25 January, where several Fibonacci retracements lie. However, the move signaled further recovery towards 143.20/30 (200-day MA) onto 143.70.

According to Technical Markets Strategist Dmytro Bondar at RBS, “Further upside will be likely for this week after a minor correction from 200-day MA takes place. Momentum is turning positive, as the 20/5/5/3 slow stochastic has left the oversold region after forming a positive crossover. Therefore, a move north towards the 143.70 target and then 144.00 and 144.56/60 would be expected on a caveat of a sustained break below 142.00.”