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Equity markets are lower again today, but not by much. Investors have made their usual shift to the side-lines ahead of a Fed policy update. While expectations for a rate hike have drifted well into 2016, we still don’t anticipate any real commitment/news on timing. US data remains soft and central bank peers have already acted (PBoC), are expected to act this week (BoJ) or have moved markets with a gentle hint (ECB). With this trio having strengthened the USD and tightened US policy indirectly, this takes pressure off the Fed to move before it is really ready. With this in mind, and on the premise that markets have the low rates they love way beyond the short-term horizons they have adopted post-crisis, this remains a consolidation/pause within an uptrend recovery.
UK Index dropped below 6400 maintaining downtrend from Friday’s 2-month highs. DAX still pausing around 10800, digesting last week’s 600pt advance. Wall St also pausing after 400pt jump last week, finding resistance at 17600. Gold in tight range around $1165, itself within a 2-week falling channel.
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UK 100 broken below 2-week resistance-turned-support at 6400, but holding within rising channel with support at 6350. Not quite oversold yet.
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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 is still hanging around 10800 which increases the chances of this pause being a bullish flag pattern which deliver a break to the upside. Back to falling highs 11300?
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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Our US Dow Jones futures is little different from yesterday with resistance at May fallinb highs and support from the 200-day MA,. The pause at 17600 continues and a breakout could see May highs revisited. However, a pullback could see a retreat to 17200.
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 now in a very tight range around $1165, which confirms markets waiting for Fed update and any subsequent USD move.
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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