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Equity markets nursing chunky losses having gapped lower into the new week on surprise news of a Greek referendum as PM Tsipras passes the buck and asks his 11m electorate whether it wants to accept or reject what he regards as unacceptable Creditor proposals/reforms for release of bailout funds.
While Greece is sure to miss Tuesday’s IMF debt payment, thus falling into arrears and joining an exclusive club, this may be the least of our worries as a rejection vote next Sunday could seal the country’s exit from an altogether more important one – the Eurozone single currency – and contagion risk is very real.
UK Index rallied off worst levels to test prior support 6630. DAX found support above 2-week lows 10800. Dow bounced off recent lows and 200-day moving average 17700. Gold failing to shine despite much uncertainty.
UK 100 trading around prior lows 6623 after gaping lower on Greek news. This level/zone could serve as near term resistance as Greek uncertainty intensifies, however, the index is off its worst levels and showing appetite to recover some of the lost ground.
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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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Germany’s DAX found support above recent lows 10800 which bodes well in terms of a recovery to recent highs 11600, but the index remains within a 4-month falling channel with downside to the 200-day moving average 10620.
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 also found support at recent lows 17700, with additional assistance from the 200-day moving average. Potential for rebound to recent highs 18200 while the Longer term uptrend is intact.
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 bounced of recent $1170 lows, but failed as much as expected from heightened uncertainty surrounding Greece. A stronger USD is a problem, as is interest in alternative safehavens such as the JPY. Failure to better 23 June highs of $1188 is an issue, especially with the safehaven metal now trading back down below $1180.
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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