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Equities are on the back foot to start the new trading week, sentiment dented by a weak USD derived from Trump’s Friday inauguration speech striking a very anti-globalisation tone. This is fuelling concerns about how gung-ho he’ll be on certain divisive policies. Reciprocal GBP and EUR strength is pushing UK Index and DAX components lower on account of their goods now being slightly more expensive and international profits worth that little bit less.
The UK’s UK Index is hindered by Banks, Telco, Tobacco and Healthcare easily outweighing Miners whose USD-denominated wares traditionally welcome Greenback weakness. Gold and Silver are benefiting even more so as political uncertainty (US, Brexit, Europe) spurs safe haven demand. German’s DAX has a real mix of big names dragging it down.
After breaking below 7160 support overnight, the UK 100 is now testing the level for resistance. The DAX 30 is holding sideways 11500-11630. Dow Jones Futures sit just beneath the ceiling of a two-week 19600-19800 falling channel. Gold has failed again to break above $1220 but remains in an uptrend with intersecting support at $1210.
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After breaking below 7160 support overnight, the UK 100 is now testing the level for resistance after bouncing from 7130 (Oct 2016 and Apr 2015 highs). Two-week Bearish head and shoulders top reversal still alive with falling highs resistance around 7180. 4-hourly RSI holding oversold (bearish).
Watch levels: Bullish 7170, Bearish 7125
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 holding sideways 11500-11630. A range-trading opportunity?
Watch levels: Bullish 11585, Bearish 11565
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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Dow Jones Futures sit just beneath the ceiling of a two-week 19600-19800 falling channel. RSI challenging falling highs after bouncing from oversold.
Watch levels: Bullish 19840, Bearish 19750
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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Gold has failed again to break above $1220 (last week’s highs) but remains in an uptrend, intersecting support valid at $1210.
Watch levels: Bullish $1215, Bearish $1210
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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