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Equities are again mixed, but it’s the turn of Germany’s DAX to underperform. Additional GBP and EUR strength vs USD (derived from hawkish BoE/ECB) is normally a hindrance to both the UK Index and DAX. However, the UK Index is positive thanks to it deriving more benefit from USD weakness (peer strength, scepticism in US) because of the boost this offers dollar-denominated commodities, notably growth-sensitive copper and iron ore. Banks strong after US Fed stress test results and apparent central bank hawkishness (BoE, ECB).
The UK 100 is off its lows due to strength among Miners (oil rebound, USD weakness helping metals) and Banks/Financials (Fed stress test results, hawkish central banks, HSBC broker upgrade). Dragging on the index are Oil majors (GBP and EUR strength) and international defensives including healthcare (GBP strength). The DAX is being lead lower by Euro strength hurting Industrials, Autos and Consumers, offsetting gains for Banks/Financials.
The UK Index 100 is back from a test of 2-week falling highs resistance at 7430. The DAX 30 is back for a bearish test of 12600. Dow Jones Futures have once again turned back from 21500. Gold has sold back below $1250 after failing to overcome June failing highs resistance.
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The UK Index 100 is off its 7380 lows but back from a test 2-week falling highs resistance at 7430. Where next?
Watch levels: Bullish 7450, Bearish 7380
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 back for a bearish test of 12600 having failed (much like the UK Index ) to overcome 2-week falling highs resistance.
Watch levels: Bullish 12620, Bearish 12585
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 once again turned back from 21500. Retrace on the card?
Watch levels: Bullish 21,480; Bearish 21,440
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 sold back below $1250 after failing to overcome June failing highs resistance.
Watch levels: Bullish $1248; Bearish $1245
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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