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Major Support & Resistance (pivot points – explained):
Pivot: 6577; Support: 6545, 6513, 6480; Resistance: 6610, 6643, 6675
The Index weakened sharply yesterday to retest rising lows from 7 Aug. Uptrend and recovery still intact, even if limited ground gained. This morning sees another retest of 6610 highs suggesting bullish bias. Note, however, limited momentum limited amid thin summer volumes. Support from rising lows (and pivot point), while resistance remains yesterday’s early highs 6610. Ascending triangle (normally bullish) in formation?
UK inflation data dominates the macro calendar this morning, all the more important given that new BoE governor Carney put it as an one of his knock-out clauses alongside his pledge to keep the base rate low though 2016 until unemployment improved to 7%.
Thereafter, it’s more clues on strength of Eurozone and US economy which have the potential to swing sentiment either way. Positive Eurozone industrial Production and ZEW Surveys would bode well ahead of the region’s GDP update tomorrow (goodbye recession?). Good US Retail Sales, however, would simultaneously imply growth and recovery (nice) but also add weight to expectations of a September Fed tapering of the markets’ drug QE3.
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
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
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
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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