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Equity markets in the red this morning having lost recovery momentum despite near-term resolution of Greek bailout worries, Chinese equities regaining composure (however artificially it may prove) and an otherwise solid start to earnings season. The prospect of an impending US rate rise is keeping the USD doggedly strong (3-month highs) which is weighing heavily on commodities (especially Gold) and beginning to bite into US corporates’ revenue growth.
UK 100 testing recent lows 6770 after failing at another test of 6800. DAX30 sideways 11700-11800, Dow Jones back from 18150 and struggling with 18100. Gold bounced from 5yr lows but weakened again overnight to test $1100 again.
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UK 100 rebound lost momentum around 6800. Extended pause before resumption of rally, or pullback towards support at 6750 200-day MA first?
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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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Germany’s DAX breakout from 3-month falling channel still in play but resistance encountered at 18100 for a second time. Support at 11700 remain bullish, but potential for a pullback to 11600 to further digest strong rebound gains from 10700 lows.
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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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US Dow Jones encountered resistance at 18150 via intersecting trendline from mid-April. Failure to get back above 18100 this morning is not a good sign this morning suggesting further digestion (sideways, pullback) of recent rally may be needed before uptrend can resume.
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 may have bounced from 5yr lows, but it has work to do before generating any recovery excitement as still very much in a downtrend. Failure to get back above $1120 yesterday and $1110 this morning keeps bears in control over any remaining bulls. Continued hawkish Fed talk remains a hindrance, keeping keeping USD strong.
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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