Flash: Bund prices eye recovery to 142.00/43 region – RBS

FXstreet.com (New York) - According to Technical Strategist Dmytro Bondar at RBS, “Bund prices bounced from 140.00 support and formed a reversal “Homing Pigeon” reversal candlestick pattern (a candle’s body within the previous session of the same color following a trend), confirming the view for a short-term recovery to the 142.00/142.43 resistance region.”

If the price gets above 142.43, it would face strong resistance at 143.15/23 and 143.95. “That would be long-term selling levels as per below. The long-term view is bearish, as a monthly yield chart has formed a double-bottom and broken its resistance line after forming an inverse advance block candlestick pattern pointing to 2.1% and 2.33% yield targets from the double-bottom pattern.” Berry notes.