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Equity markets giving a mixed reception to overnight Greek Parliamentary approval of tough reforms for a third bailout and the ramp-up of US Q2 earnings season. Note Germany’s DAX outperforming the UK’s UK Index and US Dow Jones due to dollar-strengthening rate-rise comments from the Fed Chair Yellen which ushered the EUR to fresh lows, thus benefiting Germany’s exporters.
The single currency is further weighed by Greek PM Tsipras facing strong rebellion within his coalition-leading Syriza party meaning political risk attached to potential re-elections (should he be forced to resign) and another sure-fire referendum-echoing rejection of austerity. And that’s before we talk of the standoff between Europe and the IMF on the touchy subject of Greek debt relief if the nation is to have any chance of returning to a position of sustainable debt and self-financing ability.
UK 100 holding just below 6800 after recent breakout. DAX30 continuing to edge higher, nearing 6-week highs 11700. Dow Jones eyeing June highs 18180. Gold testing 2015 lows.
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UK 100 pausing just shy of 6800. Early week breakout keeps 9-month uptrend alive, but June highs 6880 need to be bettered before 7000 can be assumed. 200-day MA now likely supportive at 6747. Note RSI falling back from overbought.
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Germany’s DAX still advancing, with 11500 and 11600 now likely turning supportive for any pullback. Trading 6-week highs, there is potential to regain 12000.
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Possible support
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US Dow Jones joined European peers to break above May falling highs. Strong bounce from 17500 offers chance to revisit May all-time highs. 18,000 surely supportive now for any pull-back.
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Possible support
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Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Gold is back testing 2015 lows. A Fed-strengthed USD and Crisis weakened EUR not helping. Bounce or break?
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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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