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European equity markets are on the back foot heading into the long Easter weekend, with a plethora of bearish motives weighing on indices while we await the unofficial earnings season curtain raiser with 3 of the 4 largest US banks reporting Q1 figures. The Trump-inspired US dollar sell off continues to hurt the UK Index and DAX’s foreign earning contingents, despite a marginal recovery. Meanwhile Crude Oil benchmarks have broken 2-week rising support, weighing on the UK’s heavily-weighted Energy sector, while a metals price rally has fizzled out following positive Chinese trade figures overnight as the greenback attempts to recoup losses.
The UK’s UK 100 is being heavily impacted by losses for aforementioned Oil majors BP and Shell (-15pt impact), while HSBC (weak USD, US banking Q1 figures hesitance), RB (ex-div) and RBS (EC investigation into Williams & Glyn saga) all weigh. Attempting to prop up the index are ABF (Jefferies upgrade to ‘Buy’), FRES (Gold price rally) and MDC (forecasts 36.7% earnings growth in next fiscal year).
The UK Index 100 is holding above the psychologically important 7300 level following a fall from 7345 overnight highs. The DAX 30 is challenging support at 12110 for a second time today. Dow Jones Futures have recovered from a test of 20530 support, however remain under pressure. support. Gold is back testing 9-month falling highs resistance at $1289.
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The UK Index 100 is holding above the psychologically important 7300 level following a fall from 7345 overnight highs. Will it bounce back or break below?
Watch levels: Bullish 7325, Bearish 7295
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 challenging support at 12110 for a second time today. Will it break for a test of 21200 rising support?
Watch levels: Bullish 12130, Bearish 12085
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 have recovered from a test of 20530 support, however remain under pressure.
Watch levels: Bullish 20590, Bearish 20,510
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 is back testing 9-month falling highs resistance at $1289. Note RSI remains overbought
Watch levels: Bullish $1290, Bearish $1282
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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