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Equities mixed this morning – UK Index down, DAX and Dow ranging, Gold pulling back – as markets digest some encouraging news regarding China’s currency, a Greek bailout deal (but how many times will a deal be ‘announced’ before one actually materialises?) and a September US rate liftoff.
China’s Yuan appears to have been valued higher than expected by the forex markets, allaying somewhat those fears of last week concerning the PBoC’s role in its pricing. A perceived stronger renminbi putting downward pressure on the Shanghai composite.
German ministers to meet on Wednesday, widely believed to be set to approve the latest Greek bailout as Angela Merkel signalled a willingness to open up to discussions about debt relief and/or restructuring, with the DAX treading water.
The Dow Jones is in a similar situation – buoyancy from hopes a September US rate rise will be pushed back, while balancing pressure in the form of a subdued growth outlook from the Philadelphia Fed appears to be sending risk-off investors towards safer havens.
Gold down a couple of dollars from the open having pulled back from resistance $1120 as those china currency wobbles abate and profit taking by those who got in at $1080, noting that the rally has lost some steam and may continue to do so.
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UK 100 testing rising support once again, a concern being today’s near bearish engulfing candle erasing all of Friday’s gains and pushing lower. Support still holding, just. Lots of resistance as we start the week.
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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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Germany’s DAX trading around 11,000 support with the current 1-month falling channel having found horizontal support courtesy of 200-day MA that could see the index rally back towards the channel ceiling. Resistance at 11,100 remains a stiff hurdle, however.
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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US Dow Jones still testing those falling highs around 17450. Still doing its best to avoid another leg to the downside after encouraging data releases.
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’s recovery from 5yr lows has stalled somewhat as the yellow metal battles resistance around the $1120 mark but still buoyed by those China currency worries which have not gone away completely.
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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