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European equities are on the back foot into the weekend, continued profit-taking dragging indices from recent highs. This stems from more tempered optimism towards Trump tax changes; pudding wanted for proof. A weaker USD following less hawkish Fed minutes hinders Europe via reciprocal GBP and EUR strength, despite continental election risk.
The UK’s UK 100 is dragged lower by banks (RBS & STAN results), Miners and Oil (strong GBP, oil prices back from highs). This easily offsets more muted strength in Telecoms (BT recovery), Airlines (IAG results) and a defensive mix.
Germany’s DAX underperforms on a stronger EUR hurting its many exporters and read-across from UK Banks, while Wall St outperforms, albeit still called to open lower this afternoon.
The UK 100 has broken below 7255 support and gone on to make a bearish test of 7220. The DAX 30 has broken below 11900 to test 11800 for support. Dow Jones Futures has broken below 10-day rising support at 20800 to test 20750. Gold has broken higher on the weaker USD to confirm the last leg of bullish flags towards $1280.
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The UK 100 has broken below 7255 support and gone on to make a bearish test of 7220. Note RSI close to oversold.
Watch levels: Bullish 7235, Bearish 7210
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 broken below 11900 to to test 11800 for support.
Watch levels: Bullish 11830, Bearish 11795
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 has broken below 10-day rising support at 20800 to test 20750. Further to correct?
Watch levels: Bullish 20,760, Bearish 20,730
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 broken higher on the weaker USD to confirm the last leg of bullish flags towards $1280. RSI holding in bullish upper half of range. Beware 200-day moving average $1260 which may represent a hurdle after the recent sharp jump.
Watch levels: Bullish $1258, Bearish $1255
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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