Type:
Bearish Dip
Key Levels:
Resistance: 154'10
Pivot: 153'15
Support: 151'08
Preferred Case:
Price is near pivot level of 153'15 in line with 38.2% Fibonacci retracement. Price can potentially dip to the take profit level of 151'08 in line with 127.2% Fibonacci projection and 78.6% Fibonacci retracement. Our bearish bias is supported by the stochastic indicator as it is near resistance level.
Alternative Scenario:
If price were to continue its rally, it can potentially rise to the 1st resistance level of 154'10 which is also our graphical swing high resistance.
Fundamentals:
With the Russo-Ukraine conflict escalating to an all out war , prices of bonds will continue to increase as investors flock to safe haven assets. Technicals and fundamentals do not line up thus there is a risk- on factor when looking into ZB1!
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.