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Equity markets struggling under the weight of shortened holiday weeks in the UK and Japan and picking up last week’s 2-week downtrend from 2016 highs. Investors would appear to be wondering whether China data is signalling renewed weakness (private data at odds with official) and if an Australian rate cut – to counter disinflationary pressures – is a sign of desperation on the currency wars front. Commodities-exposed names failing to garner any benefit from an increasingly weak USD (15.5-month lows, dented by Yen strength), something normally supportive for the dollar-denominated space, with oil prices off their highs and metals prices (excluding precious) surprisingly mixed. The resulting strong EUR continues to weigh on Germany’s DAX while results from some of the big hitters (HSBC, BNP, UBS) remind us of the headwinds facing the key financial sector.
UK 100 broken below key 6220 level to revisit the Mar-Apr sideways channel. DAX30 downtrend accelerated after a decisive breach of 10110. Wall Street/Dow Jones futures sell-off accelerated from 17900 crossroad of resistance. Last week’s pivotal level 17800 being tested as we write. Gold testing $1300 again amid its quest to regain 2015 highs of $1308 its continued turnaround aided by a weak USD as well as recently reduced risk appetite.
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UK 100 downtrend has resulted in a breakdown at 6220 and return to the confines of the March-April sideways channel. The breakdown also puts paid to the trend of intersecting support from Jan lows.
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Possible support
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Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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DAX downtrend resulted in breakdown of that key 10100 level and intersecting support from mid-March. This leaves us open for a retrace to Feb rising lows around 9850.
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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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The Dow Jones has sold back from 17900 thanks to double resistance from both short and longer-term trendlines. Potential downside to intersecting 2-month at 17700.
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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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Gold is benefiting from that weak USD and reduced appetite for risk assets. This has already allowed for a test of $1300 and could mean the yellow metal’s impressive turnaround from 6yr lows has legs to revisit 2014 highs just shy of $1400. Bullish pause Feb/Mar/Apr before it powers higher?
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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