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Equities are bloodied by currency moves this morning. The UK’s UK 100 sees internationally exposed members hampered by a stronger GBP after the UK currency succumbed to some short-covering from recent lows ahead of what is expected to be some welcome clarity on Brexit from PM Theresa May at 11.45am. Miners are a major negative influence as commodity prices retreat, in spite of USD weakness.
Today’s underperformer, the DAX, is suffering a similar fate to the UK Index with currency strength (EUR) hurting exporters, due to a weak USD. This has propelled the single currency back close to 2017 highs. The weak USD derives from the UK Sterling rally, safehaven seeking in the Japanese Yen and unwinding of recent Dollar bullishness ahead of Trump’s inauguration. Wall St futures are outperforming (the least weak) with traders yet to return from their long weekend.
The UK 100 is testing 7300 having ended its winning streak and breached 2017 rising support. Was that the top? The DAX 30 is headed back towards intersecting 1-month support at 11430. Bounce or breach? Dow Jones Futures have broken below Friday’s lows still range-bound 19800-19900, awaiting traders’ return. Gold’s breakout at $1200 has extended to $1218 thanks to USD weakness, although Fibonacci resistance is a hurdle.
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The UK 100 is testing 7300 having ended its winning streak and breached 2017 rising support. Was that the top with falling highs since yesterday and RSI finally starting to correct from overbought?
Watch levels: Bullish 7310, Bearish 7290
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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The DAX 30 is headed back towards intersecting 1-month support at 11430. Bounce or breach?
Watch levels: Bullish 11470, Bearish 11440
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Dow Jones Futures have broken below Friday’s lows still range-bound 19800-19900 (narrowing range), awaiting traders’ return. 2017 rising low support still valid? RSI still in downtrend – negative divergence.
Watch levels: Bullish 19835, Bearish 19805
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Gold breakout at $1200 has extended to $1218 thanks to USD weakness although here it finds 38.2% Fibonacci retracement resistance of the July sell-off and an overbought RSI indicator. Clearing $1218 could open the door for a rally to $1230 and then $1245.
Watch levels: Bullish $1221, Bearish $1214
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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