Forex Flash: Bearish gap closes as Bunds test resistance – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “Bund prices tested the 142.95 resistance, being the 50% retracement from the July 2012 impulse wave on a continuation chart, which closed the 142.50 bearish gap from 28 January 2013, suggesting more recovery towards the 143.70 mark is likely.”

In addition, “the 10/3/3/3 slow stochastic is turning positive from the oversold region, confirming the view. The primary stipulation would be a sustained break below 141.93. Overall however, favor buying dips near the 142.18/25 support region to 142.90 onto 143.30 and 143.70.” Bondar recommends.