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Equities higher this morning with markets relieved to hear China not seeking to aggressively devalue renminbi in order to offset slowing exports, with this week’s FX drops deemed to have already corrected pent-up misalignment (downward pressure from loose global monetary policy) and any further declines from new floating rate system to be managed (evidence already seen).
Concerns about internal panic about slowing growth in the world’s #2 economy and 10% FX devaluation required to boost exports has thus been put in check for now, even though it is unlikely far from the truth with data reliability regularly called into question. Harmless window-dressing of the renminbi for the IMF is a possibility while Germany is already doing its best to pour cold water on a Greek bailout deal.
UK 100 holding above 6600 after yesterday’s bounce. DAX trying to get above 11100. Dow Jones bounce slowed up around 14750. Gold dropped back from market volatility induced highs of $1125.
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UK 100 bounced from 6635 to regain 6600 and challenge 3-day falling highs. 6-week narrowing pattern. Potential resistance at 6650
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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 above 3-day falling highs thanks to strong bounce from 1-month falling lows 10900 and deep test of 200-day moving average 10986, struggling to get above 11100 and now officially in 1-month falling channel.
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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US Dow Jones may have bounced sharply but remains hindered by falling highs from mid-July as gains slowed up before 17500. Still potential for another downside jaunt.
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 a lot to thank the Chinese for with market volatility renewing interest in the safehaven metal and sending it to its best levels in a month. Having cleared a couple of hurdles, now in narrow rising channel.
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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