Bund

German 10-yr Bunds at key support, bullish divergence on intrada

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German 10-yr Bund prices dropped to rising trend line support coming from June low and July low.

Prices are attempting a rebound form the rising trend line support and the odds of a solid rebound are high, if we take into consideration the bullish price RSI divergence on the hourly and 4-hr chart. Even the MACD is suggesting the bearish momentum has run out of steam.

Possible rebound in Bund (drop in yields) suggests we may be in for a more pronounced bout of risk aversion in the financial markets.

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