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17 Apr 2013
Forex Flash: Bunds to find support at 20-day MA – RBS
FXstreet.com (Barcelona) - According to Technical Strategist Dmytro Bondar at RBS, “Bunds remain long from the 145.50/65 support level, as oscillators started to exit the overbought condition and a good support is expected at the 20-day MA of 145.35 and 145.11 Fibonacci level, being 138.2% projection from the Feb. impulse wave.”
Moreover, “It is important to note that the recent price action does not form a Head and Shoulders pattern due to a downwards sloping neckline. The 145.96 pivot point was taken out, hence I would expect the market to re-test 146.43 (161.8% projection) and extend the rally to 147.00. The primary stipulation would be a sustained break below the 145.11 retracement.” he adds.
Moreover, “It is important to note that the recent price action does not form a Head and Shoulders pattern due to a downwards sloping neckline. The 145.96 pivot point was taken out, hence I would expect the market to re-test 146.43 (161.8% projection) and extend the rally to 147.00. The primary stipulation would be a sustained break below the 145.11 retracement.” he adds.