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Risk appetite would appear to have disappeared as quickly as the weekend sun. Asian bourses failed to capitalise on a positive US finish, battling a falling oil price and regional currency strength derived from a US dollar coming off its highs (US rate rise concerns receding; emerging market FX steadying). This had set us up for a flat European open but sentiment has since dipped, benefiting safehavens, after UK Industrial Production bounced less than expected (adding to poor European prints his week), a suspect package put London on alert and the Brexit/Bremain UK-EU referendum debate continues to hot up.
The UK 100 at 6145 is fighting to hold a 3-day uptrend in the hope of overcoming a 3-week downtrend. The DAX30 is back below 10000, still in February’s uptrend but equally still in a 3-week downtrend. Wall Street/Dow Jones futures bounced off 17820 to hold the rising channel and reversal from Friday’s 1-month lows. Gold’s bounce from $1260 support and up through $1270 maintains the 2016 reversal, helped by a weaker USD.
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The UK 100 is testing 3-day rising support itself within a 3-week downtrend that remains intact. While we hover, note that a break below 6130 or above 6170 will likely dictate the next leg.
Solid Green line
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 DAX is back below 10000 after struggling to better 10100 and being sent back south by 3-week falling highs resistance (like UK Index ) and the 200-day moving average. Bulls eyeing Feb rising support at 9950. Bears hoping for a retreat to 9800.
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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Dow Jones futures have bounced off 17820 to hold a rising channel and reversal from Friday’s 1-month lows. Upside towards 18000 if yesterday’s trend of falling highs can be overcome.
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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Gold holding its bounce from $1260 support with a break up through $1270 to keep the 2016 reversal in play thanks to a weaker USD. Further souring of market risk appetite could take us back to potential resistance around $1290 in the form of falling highs since the turn of the month’s test of $1300.
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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