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Global equities are pausing for breath today following on from yesterday’s French election-inspired rally, holding on to gains but unwilling to take the next step higher as we await an update on Trump’s tax reform plan as early as tomorrow.
After overnight strength, the US dollar has pared gains to trade close to last Friday’s 1-month lows, with translational strength from GBP and EUR hampering the UK Index and DAX (the former positive while the latter turns negative), while the Wall Street awaits Q1 earnings from no less than 5 Dow Jones components – a sixth of the entire index.
The UK’s UK Index remains in positive territory thanks to contributions from RDSb (Crude Oil holding at support), Pharmas SHP, AZN & GSK (Novartis Q1 results read across), and Banks RBS & HSBA (continuing European bank outperformance post-French election result). Attempting the hold the UK Index back are WTB (Q1 results disappoint), Miners AAL & BLT (Goldman downgrade) and ABF (technical resistance).
The UK Index 100 rally has slowed upon reaching intersecting resistance at 7285. The DAX 30 has fallen from yesterday’s fresh all-time high, however remains supported above 12,400. Dow Jones Futures are narrowing around 20,800 ahead of today’s Q1 earnings barrage. Gold has fallen from overnight highs of $1278 to $1270 support as risk appetite continues to build.
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The UK Index 100 rally has slowed upon reaching intersecting resistance at 7285. Break higher or lower? RSI holding around mid-range level.
Watch levels: Bullish 7300; Bearish 7245
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 eased from an overnight futures all-time high, however remains supported above 12,400.
Watch levels: Bullish 12480; Bearish 12420
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 narrowing around 20,800 ahead of today’s Q1 earnings barrage. Will positive results see a breakout to challenge 3-week highs or will a disappointing day see a test of rising lows support?
Watch levels: Bullish 20,815; Bearish 20,770
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 has fallen from overnight highs of $1278 to $1270 support. Will it bounce back to challenge the channel ceiling or will rising appetite for equities see a breakdown?
Watch levels: Bullish $1273; Bearish $1268
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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