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Equities showing continued appetite for risk assets into the end of the week, supported by a mild oil price recovery in the run up to next weekend’s Doha meeting and commodities finding support in the wake of recent sector weakness. This despite Fed Chair Janet Yellen last night putting a bid on the USD by saying the US central bank was on course for further rate rises this year. Perhaps markets are content enough to hear her calm recessionary fears and reassure that the US economy continues to heal whilst reiterating a cautious approach to rate hikes and the Fed being watchful of external factors and not just US macro data. That and her predecessors predictably dispelling Republican candidate Trump’s claims that loose monetary policy has fuelled a US ‘bubble’.
UK 100 bounced from 6110 to make another rise towards the 6200 channel high. DAX30 bounced at 9450 but struggling with 2-week falling highs. Wall Street/Dow rallied 150pts back to 17650, just shy of 5-day falling highs. Gold has eased back to test its recent breakout $1230 level for support.
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The UK 100 bounce at 6110 has helped the index back towards the channel ceiling but bullishness already checked at 6185. Sideways channel still valid although bulls excited by first appearance of rising lows for a while. Bullish ascending triangle forming? Another pullback first? Note the overbought RSI
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 DAX may have bounced at 9450, but has already found a hurdle in 2-week falling highs at 9620 which gives us a down-channel that could usher the index back to 9400. Note RSI overbought.
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 Dow Jones has bounced 150ts pts 17650, but looks to be struggling under the weight of falling highs since hitting multi-month highs last week. Falling channel? Note RSI overbought.
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 has eased back to test the recent $1230 breakout level for support. This could help push it to fresh April highs it should a weaker USD ensue or market risk appetite take a dive.
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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