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17 Jan 2013
Forex Flash: Bund rally continues after bullish opening – RBS
“Bunds opened higher with a bullish gap, pointing to a likely continuation of the move upwards after reaching the first target of 143.30 and taking a breather in the nearby region. The next targets include 143.78 and 144.17, which are Fibonacci retracements from the January 2013 sell-off.” Suggests Technical Strategist Dmytro Bondar at RBS.
In addition, “Support now moves to 143.30 and 142.90/95, where the 200-day MA and retracement from July 2012 impulse waves lie. However, momentum is now showing a clear positive divergence with the price action confirmed by a bullish crossover in the oversold region, as indicated by the 10/3/3/3 slow stochastic on the chart to the right.” he adds.
In addition, “Support now moves to 143.30 and 142.90/95, where the 200-day MA and retracement from July 2012 impulse waves lie. However, momentum is now showing a clear positive divergence with the price action confirmed by a bullish crossover in the oversold region, as indicated by the 10/3/3/3 slow stochastic on the chart to the right.” he adds.