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Equity may be off their worst levels but remain comfortably in the red after sentiment took another dive overnight. This maintains the downtrend and risk averse tone of late after a dovish Fed last night suggested the FOMC was unconvinced about US economic recovery and concerned by the UK’s referendum on EU membership next week. The aforementioned event-risk also saw the Bank of Japan hold fire on more stimulus overnight despite economic concerns which helped its Yen currency higher. This nasty central bank combo dealt Asian sentiment a blow by sending the USD/JPY to 22-month lows, hurting Nikkei exporters even more than they have been already via the currency’s appeal as a safe haven alternative to precious metals. A week until the vote, fresh Brexit polls showing a bigger lead for ‘Leave’ means a City atmosphere of both excited anxiety and curious concern. Beware bearish flags fluttering in a Brexit wind.
The UK 100 has bounced from a test of 5900 support but resistance at 5940 keeps it within a 24-hour falling channel. 400pt bearish flag on the cards? The DAX30 is back above 9500, but struggling to get beyond 9550. Bearish flag in the making? Wall Street/Dow Jones futures are off their 17550 lows but look in the midst of a 400pt bearish flag retreat to May lows 17325. Gold has made it to fresh 2016 highs (22-month highs, like the Yen) thanks to a weaker dollar, risk aversion and safe haven demand.
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UK 100 bounced from test of 5900 but resistance at 5940 keeps it within a 24-hour falling channel. Yesterday’s failure at 6000 means a 400pt bearish flag down to 5600 (repeating recent decline from 6300) is very real possibility should we see decisive break below 5900.
Watch levels: Bullish 5950, Bearish 5915
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 DAX30 is back above 9500, but struggling to get beyond 9550. Note falling highs since yesterday’s peak. Another chunky bearish flag set to send us lower towards 2016 lows, like UK Index and Dow?
Watch levels: Bullish 9575, Bearish 9490
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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Wall Street/Dow Jones futures are off their 17550 lows but – like the UK Index -) look in the midst the a 400pt retreat to May lows 17325. This via a bearish flag pattern that would repeat the declines we just saw from 18000 to 17600.
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 testing 2016 highs (22-month highs, like the Yen) thanks to a weaker dollar, risk aversion and safehaven demand. Can it build on its 2016 turnaround to regain $1400?
Watch levels: Bullish $1315, Bearish $1295
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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