Bunds might slip in the near-term – Commerzbank

FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes technicals suggest that some slippage might be seen in bunds in the near-term, but as long as 158.18 holds the upside pressure will remain intact.

Key Quotes

“Bund futures continue to stall at the top of the 7 year channel at 160.39 for March. We note the TD perfected set up on the 240 minute chart and the divergence of the daily RSI and would allow for some slippage very near term.”

“Only a close below 158.18 would alleviate upside pressure and act as the break down point to key support, which remains 157.41/156.86 the 2014-2015 uptrend and 55 day ma.”

“While 160 has held the initial test, the previous range does offer an upside measured target to 160.90. The top of the 7 year channel lies at 160.39.”

“Above 160.90 we do have an additional point and figure target of 163.40/80 (from the 60 and 240 minute charts).”