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Equity indices are making a positive start to the new month, after a raft of PMI Manufacturing prints. Holes can be picked in overnight Chinese data after a Caixin report (private, small business-focused) deteriorated, however, markets appear more focused on an improvement in the government’s official report (focused on large and state-owned companies). The pair above breakeven for the first time in almost 2 years looks to be assuaging investors concerned about a slowing in the world’s #2 economy.
Commodities prices are thus reacting positively in spite of a US dollar holding recent highs and oil resuming a two-day downtrend. Eurozone PMIs may have failed to excite, but neither have they instilled any more fear. A big beat for the UK is also a welcome surprise, casting doubt over Brexit fears, however markets off their highs implies fears of the BoE needing to deliver less stimulus. So market still addicted to easy policy. Good data = bad data again?
The UK 100 has sold off to from 6825 to re-test 6800, reinforcing that bugbear 3-week falling channel. The DAX 30 has made a strong bounce from 10550, looking focused on retaking 10700 before challenging this year’s 10800 highs. Dow Jones futures above 18450 are towards the falling highs ceiling of a narrowing pattern. Gold is back testing 2016 rising support at $1305.
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The UK 100 has sold off to from 6825 to re-test 6800, reinforcing that bugbear 3-week falling channel.
Watch levels: Bullish 6840, Bearish 6790
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 30 has made a strong bounce from 10550, looking focused on retaking 10700 before challenging this year’s 10800 highs.
Watch levels: Bullish 10705, Bearish 10635
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
Dow Jones futures above 18450 are towards the falling highs ceiling of a narrowing pattern.
Watch levels: Bullish 18480, Bearish 18430
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 is back testing 2016 rising support at $1305. Bounce or breakdown. Strong USD making it more expensive to buy the safehaven.
Watch levels: Bullish $1309 Bearish $1303
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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