As predicted bunds on the open traded down quite quickly to 141.44/45 which is the 5 day MA and the 50% fib level from the 23rd July, this will remain as support from a rising trend line. We then just tracked Euro/USD going in opposite directions. The Euro/USD range traded therefore another fairly boring day for the bund market. There is support at 141.29 this is a 50% fib level on the hourly charts from the 25th Sept a break here will take us lower to 141.11 which is the 23.6% fib level. If we manage to trade below the figure we will trade lower very quickly to 140.60/62 which is 100% retracement from the 26th Sept and is the start of the gap, the daily charts have been signalling an overbought scenario since last week. A break here could quite easily take us lower to 140.31 which would then fill the rollover gap.

Resistance is now 141.83 yesterdays high, and then 141.91 a double top on the daily charts and above here there is another double top on the hourlys at 141.95 which is also 100% retracement from the 17th Sept. Above here the next target will be 142.17 which is the high from the 5th of Sept it is also the 50% fib level from the 23rd July if we manage to break up through this level 142.58/60 becomes the new target.