Forex Flash: Bund correction looms amid solid support – RBS

Bund prices reached a good support region of 145.00/144.90 after forming a meeting lines reversal pattern. According to Technical Markets Strategist Dmytro Bondar at RBS, “144.90 is the main support in the near time to determine the extent of correction, as if it is broken, then 144.50 might be tested. In the long term, the price formed a pennant pattern with the measuring target of 147.00 (flags fly at half-mast).

Furthermore, “We believe this target will be met after a possible correction from the 145.82 resistance. Resistance is expected at 145.82, 146.00/17, 146.37 and 146.67. Overall, we favor being long to 146.00/17 onto 146.67 and 147.00 on a caveat of a sustained break below 144.50.” Bondar adds.