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Major Support & Resistance (pivot points – explained):
Pivot: 6590; Support: 6562, 6539, 6511; Resistance: 6614, 6642, 6665
T-day for the Fed, with expectations for its QE3 programme, which has supported risk appetite for so long, is tweaked down on account of improving economic data. Consensus nonetheless divided, with a range of zero (focus on more forward guidance) through to a $15bn reduction.
UK index back below 6600, down near the 6560 floor of last week’s sideways channel and below the falling highs from end-May after a brief foray above. Falling highs from Monday still intact maintaining pressure. If the floor breaks, next support at rising trendline of lows from end-June at 6500.
Lots of moving parts to tonight’s Fed announcement. Some tapering would maintain credibility after build up towards a September move. It would also keep froth off markets (S&P near all-time high). No tapering justified by mixed data of late (and remember the Fed has always said “only if data keep improving”; Q2 GDP was great, but July and August data mixed). However, no tapering would likely give markets a boost when asset bubbles a concern (housing). Too much tapering could create fear unless markets convinced economic recovery is indeed strong enough.
Maybe just $5bn with more focus on forward guidance on rates and the size and pace of tapering being small and slow?
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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