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Global equity markets are mixed this morning as the UK digests hotter than expected inflation data (core at BoE’s 2% target; headline above) that has sent GBP higher, compounding fresh USD weakness, to make life hard for the UK Index ‘s international contingent. At the same time, Germany’s DAX struggles under the weight of EUR strength following the USD pull-back and centrist Macron’s better performance than far right candidate Le Pen in last night’s French presidential debate.
The UK 100 is feeling the drag of Miners (RIO, GLEN, BLT) and defensives with a strong international focus (BATS, DGE, AZN, GSK), as well as BT and HSBC. This offsets Banks’ strength (Deutsche capital raising, UK inflation) and Oil majors (oil price bounce on weaker USD). The DAX sees Banks’ gains (DBK capital increase) and BMW (results) fighting losses in Healthcare.
The UK Index 100 is back below 7420 having broken down from a bearish rising wedge. The DAX 30 is holding shallow rising support at 12040. Dow Jones Futures are at the 20930 apex of a bullish pennant. Gold sits 1225-1235 deciding whether to break higher or lower, which likely depends on whether the USD falls further or finds support.
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The UK Index 100 is back below 7420 having broken down from a bearish rising wedge. Currently testing 2-week rising support, but still within recent 7400-7440 range.
Watch levels: Bullish 7425, Bearish 7410
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 shallow rising support at 12040.
Watch levels: Bullish 12080, Bearish 12035
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 are at the 20930 apex of a bullish pennant a break out from which could take it back towards 21150.
Watch levels: Bullish 20,960, Bearish 20,910
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 sits 1225-1235 deciding whether to break higher or lower, which likely depends on whether the USD falls further or finds support.
Watch levels: Bullish $1236, Bearish $1231
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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