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Equity markets under pressure after the Fed FOMC statement saw a boost to the assessment of US economy along with a downplaying of low inflation and maintenance of the ‘patience’ pledge in raising rates this year, which has offset some recent hopes that a rate rise could be delayed into 2016. A stronger USD is hurting oil further as is mixed corporate results, Greek uncertainty and Chinese regulators stepping up scrutiny of margin trading accounts.
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The UK’s UK 100 has broken below rising support from mid-month which puts the January uptrend in doubt with falling highs from near 6900 and the breached trendline likely becoming resistance, however, support at 6750 is holding for now, offering potential for a recovery.
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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Germany’s DAX is still holding its January uptrend with rising support yet to see a meaningful test. Lots of trading around 10600 could help build up support, although we note falling highs from 27 Jan and the daily RSI is falling back from overbought.
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 remains in a downtrend channel, closing in on the December lows as poor corporate results (hindered by the strong USD) weigh heavily. The index is currently testing its 200-day MA which could prove key while we note the RSI shows falling highs but not yet oversold.
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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Spot Gold is continuing to fall back from recent highs and has breached its January trend of rising lows (blame the Fed statement and resulting stronger USD), while the RSI is falling back from overbought. However, with support available around $1275 there is potential (highly speculative) for this to be a pause within a much bigger bullish flag pattern which could complete around May 2014 highs of $1390.
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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