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Global bourses are very mixed this morning as the effect of ECB Chief Draghi’s hawkish turn spills into a second day. EUR strength is weighing on Germany’s DAX, the underperformer amongst major indices, while the UK 100 rallies back to breakeven and Dow Jones Futures turn positive after both enjoy technical breakouts from week-long resistance. The barrage of central bank speakers continues this afternoon, with Draghi speaking once again alongside BoE Chief Carney at an ECB annual policy forum in Portugal.
The UK 100 breakout is assisted by Financials (FCA asset management review not as harsh as expected?), Housebuilders (Nationwide House Price data), BNZL (H1 trading update), BT (momentum from 4-year lows), Tesco (Kantar sales growth) and IAG (27-month highs) while Shell (EUR off highs, oil under pressure), Pharma (US healthcare reform delay), and an array of Defensives and USD-exposed names including BATS & VOD weigh.
The UK Index 100 has survived a test of 7380 to break out from week-long resistance. The DAX 30 has recovered from a test of 12550 support. Dow Jones Futures are also off lows of 21310 and have overcome overnight highs of 12355. Gold has fallen back after failing to overcome resistance at $1253.5.
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The UK Index 100 has survived a test of 7380 to break out from week-long resistance, however remains hindered by 2-week falling highs resistance.
Watch levels: Bullish 7450, Bearish 7420
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 recovered from a test of support at 12550, however fails at 12620. Back to support?
Watch levels: Bullish 12630, Bearish 12590
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 also off lows of 21310, breaking out from resistance at overnight highs of 12355.
Watch levels: Bullish 21,370; Bearish 21,350
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 fallen back after failing to overcome resistance at $1253.5.
Watch levels: Bullish $1255; Bearish $1249
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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