FxWirePro: European election uncertainties threaten our short call in 10-year bund

This is yet another review of our previous call, given out in October last year to short the 10-year bund at a breakout of 162.5 with an initial target of 160 area and subsequent longer-term target of 153. The article is available here, http://www.econotimes.com/FxWirePro-10-year-bund-heads-for-a-sell-breakout-367667

In a subsequent article, we have reaffirmed our outlook and also shared our forecast that the spread between the 2-year bund and the 10-year bund would widen over time. That review is available here, http://www.econotimes.com/FxWirePro-Keep-riding-the-bund-short-call-review-397028

While our 160 target was reached and the spread widened, our short call in the 10-year bund is currently under threat as the investors brace for the safety of the bunds in the wake of election uncertainties in the European continent. In Netherlands, and in France, anti-European parties are on the rise and a breakup of the European single currency area is not an impossible future anymore.

Our stop loss for this trade at 168 has not been hit yet as the bund is currently trading at 166 but if Geert Wilders in the Dutch election on 15th March makes gains more than expected and if Marine Le Pen wins French election with a bigger margin than expected then our stop loss will not only be hit, the bund price would cross 170.