Bund: Bearish Crab Formed, Potential Head & Shoulders Breakdown FX:BUND
The Bund has recently formed a bearish crab pattern on December 6th at 136.42, which triggered a pullback. It's worth noting that this level coincided with the monthly fractal resistance from August at 136.25, a key zone that could lead to a significant rejection. With the new support established at 134.38, we are now at a critical point where a head and shoulders pattern may start to develop. If this pattern completes, it could push Bund back to 132.46, marking a strong bearish move after a previous momentum surge.
Key Highlights:
Bearish crab pattern formed on December 6th at 136.42, triggering pullback.
Testing the monthly fractal resistance at 136.25, which could provide strong resistance.
New support at 134.38 acting as the neckline for a potential head and shoulders pattern.
Right shoulder of the pattern still forming, but a break below 134.38 could lead to further downside.
If the head and shoulders pattern completes, Bund could drop to 132.46.