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Equities mixed again this morning with the UK Index taking its turn as the underperformer, with Fed-inspired USD strength hampering the key raw materials and commodities space. While the Fed remained hawkish, the likelihood is that ECB President Draghi reiterates his dovish rhetoric as markets begin their wait’n’see ahead of the US jobs report and, incidentally, more Fed speak this afternoon. However, beware potential for the BoE data dump to surprise with some expectations of an MPC vote registering a hawkish shift, which would bring it closer to the Fed, and the world closer to tighter policy.
UK Index slap bang in the middle of bullish ascending triangle. Dax holding October’s strong uptrend. Wall St’s rally puts it on track to revisit all-time highs. Gold has broken below $1115 to test near October lows.
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UK 100 yet to break above May falling high, but potential for a breakout to see 6700 revisited. Supported by bullish patterns – double bottom (purple), ascending triangle (blue). RSI sideways in upper half of range is bullish.
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 its uptrend from 9300 lows end-September. Additional support kicked in at 10800 via shallow rising lows from late October. Note recent sideways action could be a bearish rising wedge.
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
US Dow Jones futures still in strong rising trend. All-time highs possible again. Break above shallow falling highs and 200-day MA is positive. Watch for a turnback by overbought RSI.
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
Gold broken below $1115 meaning potential for full retrace of end-July to mid-Oct rally. Note RSI oversold, which was the case before the last rallies. Downtrend for now.
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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