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Equity markets back in the red this morning with a more hawkish than expected Fed message reviving expectations of a December US rate hike while strong Japanese data has trimmed hopes of more BoJ stimulus tonight. While US bourses appeared to rally on Fed-inspired US growth hopes, Europe’s reaction suggests discontent at the prospect of tighter/less accommodative policy from both major central banks. Is the ball back with Mario at the ECB? Mixed corporate results, notably the Banks, also holding sentiment back.
UK Index found support at recent and 2-week rising lows. DAX back down at 10800 after a test of 10900. Wall St is taking a breather after its breakout at 17650. Gold regained composure at $1160 after a Fed-strengthened USD saw it plunge from $1180.
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UK 100 found support at recent lows and 1-month intersecting trend-line of rising support. RSI at 1-month lows, 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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Germany’s DAX holding above its breakout at 10660, keeping end-September recovery on-track, but hindered by July falling highs at 10900.
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 futures holding its breakout above 17650 and 200-day MA, meaning potential for bullish flag to complete at 18100. Note RSI turning over at 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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While Gold had already turned back from a $1180 breakout, a Fed-strengthened USD saw it plunge to 2-week falling lows and 3-month intersecting trendline at $1152 before recovering to $1160 overnight. Widening pattern.
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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