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Equities have a made a positive start to the penultimate trading session of the month. All that fuss surrounding Friday’s Jackson Hole speech by Fed chair Janet Yellen has subsided with markets washing down the normal hawkish medicine with a more tasty dovish chaser. Investors are anything but panicked at the prospect of another US rate rise this year. The later the better of course, but they look to believe that the pace of any hikes will still be slow and steady, and best of all data dependent. After all, hikes mean US economic recovery and while the Fed has a domestic mandate, it doesn’t want to derail the global economic recovery either. Peer policy easing is also helping keep the USD stronger, tightening policy indirectly. Calm has returned for now. Until Friday’s US jobs report that is.
The UK 100 is testing the ceiling of a 2-week falling channel at 6840. Breakout or retrace? The DAX 30 is itself testing the ceiling of a channel but this one is sideways 10450-10650. Will it retrace or forge higher? The weaker EUR is helping exporters. Dow Jones futures are hemmed in between shallow falling highs and rising lows at 10500, still within spitting distance of all-time highs. Gold is under pressure from that stronger US dollar, unable to bounce beyond $1325 overnight.
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The UK 100 is testing the ceiling of a 2-week falling channel at 6840. Breakout or retrace? Still in longer term uptrend and the RSI not quite overbought (yet).
Watch levels: Bullish 6865, Bearish 6815
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 itself testing the ceiling of a channel, but this one is sideways 10450-10650. Will it retrace or forge higher? The weaker EUR is helping exporters. Still in a longer term uptrend. Note the RSI overbought though.
Watch levels: Bullish 10675, Bearish 10620
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 hemmed in between shallow falling highs and rising lows at 10500, still within spitting distance of all-time highs.
Watch levels: Bullish 18530, Bearish 18480
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 is under pressure from that stronger US dollar, unable to bounce beyond $1325 overnight as equities remain and demand for the safehaven recedes.
Watch levels: Bullish $1326 Bearish $1319
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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