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Equity markets are largely in the green this morning following positive Chinese rhetoric indicating it is likely to implement economic stimulus measures to facilitate an economic recovery if need be. Indices trading higher in the UK while European shares rose on the ECB QE programme – although the Dax has taken a break. A pullback in the strength of the US Dollar helped equities on the other side of the pond while Gold remains range bound this morning as investors await the outcome of the US Fed’s meeting, one that will directly affect the strength of the currency and hence the prices of dollar denominated commodities (with the exception of oil, perhaps!).
UK 100 is recovering well this morning, back in a solid uptrend having broken above 6800 and heading up towards possible resistance at 6860. Bulls looking for a move north of this to bring all-time highs back into sight while bears will be eyeing a loss of momentum and drop back towards 6760.
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Possible support
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Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Germany’s DAX has hit resistance around 12220 having lost a little momentum this morning and has dipped below ever steepening rising support from 5-Feb. Has the Dax lost some of its German efficiency this week?
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Possible support
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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 US Dow Jones appears to be settling into a sideways channel this morning, likely in anticipation of the US Fed meeting starting today. We look to the second half of the week for a confirmation of a bottom and another move upwards. Potential support at 17901 will have the bulls hoping for a break above falling resistance from 10 March, while bearish investors will keep 17626 in their sights.
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Possible support
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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 trading continuing to trend sideways at the bottom of a longer term 3-month level channel, just off its 11-March lows and struggling to make headway before the US Fed announcement later this week. Bulls still eyeing a break above $1166 on China stimulus news while bears will eye a return to aforementioned March lows $1148 on USD strength.
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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