Forex Flash: Bunds look neutral ahead of strong resistance – RBS

FXstreet.com (Barcelona) - Bund trends remain in place with a new support gained at the 145.80 level, being the 161.8% Fibonacci projection from the February-March 2013 impulse wave. However, it faces a strong resistance at 146.80/90, where several projected Fibonacci levels lie (e.g. the full 200% projection of the February-March 2013 move).

According to Technical Markets Strategist Dmytro Bondar at RBS, “Momentum tools are pretty neutral, as overbought conditions are not meaningful in a strong trend environment. Therefore, unless a clear bearish divergence develops, there seem to be no reasons to fade the trend. The price heads towards the 146.90 resistance, where there might be an initial reaction leading to a consolidation within the 146.20 – 146.90 region. Once the 146.90 resistance is broken, the next targets would be 147.63, 148.09 and 148.44.”