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Equity markets are very much on the back foot this morning, spooked by steep stateside declines and a weak overnight session in Asia as investors price in softer US data and a more dovish Fed outlook ahead of tomorrow’s US GDP print as well as increased geopolitical risk in the Middle East. While mentioned less so, another Greek deadline (Monday) for reforms to be presented to unlock much needed funding is likely also weighing into the end of the week. Gold soaring on weak USD and safehaven seeking.
UK 100 continues to retrace from recent highs, now trading below late-Feb/early March highs which may now turn resistance. Watch for support at Jan/mid-Feb highs and round number 6900, which if unsuccessful could open the door to a bigger correction to 6700.
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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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Germany’s DAX has made a decisive break below the trendline of rising lows and support dating back to early January. The trend of falling highs dating back to 16 March as well as the daily RSI falling back from overbought proved valid bearish signals to beware. As they say, “the trend is your friend until the bend at the end”.
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 US Dow Jones’s has fallen back to levels last traded in February and the breach of mid-March lows 17630 could allow for a retrace back to Dec/Feb support at 17030. Watch whether the 200-day moving average at 17431 offers any respite.
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’s reversal and breakout has managed to see it revisit the early March highs of $1220 we pinpointed yesterday. Whether this gains of 6.8% from recent lows need consolidating remains to be seen, however, a break above could open the door for a full retracement of 2015’s declines. Watch for the 200-day moving average proving a technical hurdle at $1223.
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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