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Equity indices have gone for a dress-down and risk-off Friday, with major support levels breached or seeing meaningful tests. This is derived from Asian bourses following their stateside peers south as negative bond yields become more prevalent, calling into question global monetary stimulus efforts while growth and inflation struggle to recover post-crisis. And with event-risk related to next week’s Fed policy update and a too-close-to-call UK referendum on EU membership the week after, investors are continuing to temper their appetite for risk assets into the week-end. Apprehension likely stems from what bearing China data (Industrial Production, Retail Sales, Investment) will have on sentiment come Monday morning as well as a US dollar bounce hurting the commodity space, taking oil from its 2016 recovery highs.
The UK 100 has broken below 6200 rising support to test 6150. Full retrace to 6050? The DAX30 is testing 4-month rising support and the floor of its narrowing pattern at 9900. Wall Street/Dow Jones futures have broken below recent lows of 17925, on course for a potential test of May rising lows support at 17850. Gold has decided to have another go at hoisting a bullish flag to $1280 with risk-off sentiment and safehaven seeking possibly helping it towards $1305 highs.
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The UK 100 has broken below rising support at 6220 and 6200 to test Jun 1 lows of 6150, delivering more than expected from yesterday’s bearish head and shoudlers top reversal pattern. Could a full retrace to 6050 May lows be on the cards?
Watch levels: Bullish 6185, Bearish 6135
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 is testing 4-month rising support and the floor of its narrowing pattern at 9900. Will it revist May shallow rising lows at 9800?
Watch levels: Bullish 9925, Bearish 9860
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
Wall Street/Dow Jones futures have broken below recent lows of 17925, on course for a potential test of May rising lows support at 17850.
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 decided to have a second attempt at hoisting that bullish flag to its $1280 objective with a break above 1265. Risk-off sentiment and safehaven seeking possibly helping it towards $1305 highs despite a US dollar bounce.
Watch levels: Bullish $1273, Bearish $1262
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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