Forex Flash: Bund momentum turning bullish on weekly interval – 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. “The full target from the inverse head and shoulders pattern (144.94- 145.00 region) was met, where we recommended taking profits and wait for a consolidation within the 143.70 – 145.20 region to be completed. However, weekly momentum is turning bullish, as indicated by the slow stochastic oscillator. Overall, we favor taking profits at the target area and waiting for a dip to reload longs.” recommends Dmytro Bondar, a Technical Markets Strategist at RBS.