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Equities remain hindered by China again allowing its currency to devalue just before another batch of weak China data added to concerns about both the world’s #2 economy and of course global growth. Monetary Stimulus, Equity Intervention, FX devaluation. What next from Beijing?
Commodities still hurting on uncertain growth outlook despite weaker USD (Fed to delay hike in light of China move?). Or is Beijing genuinely freeing up its FX to satisfy the IMF and boost Yuan’s status as a real reserve currency? From optimism yesterday to scepticism today, we’re not quite there on a Greek deal yet. Work to do.
UK 100 testing 6540 rising support from July 3 lows. DAX broken below July rising support to test 11000. Dow Jones testing 17200 and falling lows from May. Gold breakout at $1100 benefiting from FX volatility and renewed uncertainty on global growth.
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UK 100 now officially in 1-month narrowing pattern with 3 trendline touches at both ceiling and floor. While full recovery could deliver 200pt gains, if support breaks there is potential to revisit 10-month rising support just below 6500 from whence we bounced in late July.
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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 broken below July rising support but weakness halted by July lows 11000 and 200-day MA 10977. Further weakness would maintain falling trend dating back to April.
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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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US Dow Jones broken down below 17400 with July downtrend accelerating to test falling lows support from mid-May. Now underwater for the year could the index retrace all the way to Feb lows?
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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 now in almost an uptrend from recent $1085 lows with break above $1100 taking the metal beyond the trend of falling highs from late June. While $1120 remains a hurdle since yesterday, potential for recovery towards 7-month falling highs at $1165.
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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