Forex Flash: Bunds eye correction as resistance reached – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “Bund prices have reached a strong resistance zone formed by the 145.20 Fibonacci retracement and filled-not-closed gap from the start of the year and formed a long-legged Doji star yesterday. The full target from the inverse head and shoulders pattern (144.94- 145.00 region) was met, where we recommended taking profits, as there are good chances of a correction to the 144.00 region. Weekly momentum is turning bullish, as indicated by the slow stochastic oscillator. Overall, favor being flat at the moment and wait for the correction to be over before re- loading longs.”