Cautiously Bullish from the 7am open above 143.42
For the 2nd day in a row there was little net movement in Bunds. In fact all price action Monday was confined within Friday's range. This price action does not provide strong or clear signals for sentiment going into today but with momentum positive and last week‚EUR(TM)s aggressive gains in the background, the underlying tone is assessed as positive. In view of this our call is Cautiously Bullish above143.42. The immediate objective is 143.99, yesterday's top, with a move beyond that point targeting 144.13, last week's peak, or even 144.52.
The risk to this call is a move under 143.42, Friday's low, indicating that the downside is likely to extend further than previously assessed targeting 143.13, half of last Thursday's net gains, or even towards 142.79, half of last week's rise.