Bund Futures Extend Breakdown Below 55-DMA; May Test 162.88
(Bloomberg) -- Bund futures clearing 163.87 support, leaving them exposed to steeper drop toward 162.88 Fibonacci level, Bloomberg technical analyst Sejul Gokal writes.
- See chart here
- Bund futures -92 ticks to 163.82
- Generic contract penetrating the ichimoku cloud top/support and breaking the 55-DMA at 164.50, first time since April
- German 10-year yield turns positive, first time since July 22, to test 100-DMA at 0.012%
- Sellers pile in after “fake upside breakout” earlier in the week; ECB’s reluctance to signal additional monetary easing undercut investor confidence in its accommodative stance, driving yields higher
- NOTE: Generic contract is roll-adjusted by difference on GFUT
- NOTE: Sejul Gokal is an technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
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