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Equity indices are flat-to-positive this morning. Germany’s DAX outperforms thanks to EUR/USD weakness derived from hawkish Fed chat boosting USD. Merkel stretching her lead in polling for September’s election may also be helping, adding to Eurozone stability. A flat UK Index has retraced early gains as weak Sterling regains composure following BoE Governor Carney’s dovish speech. US indices hold their tech-fuelled advances of last night.
The UK’s UK Index is in a tug of war between FX sensitive internationals (ULVR, DGE, VOD, WPP, DGE, AZN, RB) and Oil, Miners and Banks which are dealing with lower oil prices, a dovish BoE governor and a stronger USD hampering metals. Germany’s DAX is positive thanks to gains for ProSeiben, E.ON, Volkswagen, Continental, Munich Re and Allianz easily outpacing losses for ThyssenKrupp, Linde, Bayer and Fresenius.
The UK Index 100 has broken below rising support at 7540. The DAX 30 has edged back from fresh record highs at 12950. Dow Jones Futures are flat around above 21525, pausing after fresh record highs. Gold remains on course to complete a bearish head & shoulders top reversal pattern at $1225/30, helped by fresh USD strength and equities strength sapping safe haven demand.
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The UK Index 100 has broken below rising support at 7540 after failing to break above 7550. Will 7515/20 support hold up, or are we on for a full retrace? Note hourly RSI rolled over
Watch levels: Bullish 7540, Bearish 7510
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 has edged back from fresh record highs at 12950. Note the 4-hourly RSI is overbought.
Watch levels: Bullish 12955, Bearish 12885
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 flat around above 21525, pausing after fresh record highs last night
Watch levels: Bullish 21,530; Bearish 21,515
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 remains on course to complete a bearish head & shoulders top reversal pattern at $1225/30.g equities are sapping demand for safe havens. Note fresh USD strength hurting metals.
Watch levels: Bullish $1250; Bearish $1242
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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