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Levels to watch: FTSE, DAX and Dow

There has been some weakening across the board for stocks, as a decreasing dollar boosts sterling and the euro and thus puts pressure on the likes of the FTSE and DAX. 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Data on screen
Source: Bloomberg

FTSE 100 could find resistance at 7333

The index has fallen back from its highs above 7300, but while this may simply be another dip in this remarkable trend, a rising pound (admittedly off its lows) could spell the end for the rally.

We would look for an initial close below 7250, and then sub-7200, as an indication the sellers are now in control. Resistance lies at 7295 and then 7333.

DAX could target 11,420

Despite a push to fresh highs for the year yesterday, the index is weakening this morning. However, bears will need to get the price below the key 11,500 area that has acted as support since the beginning of the year. A close below here would then target 11,420, and then move down to 11,300.

If the price recovers and rallies through 11,624 then we look the 11,725 area as the next point of potential resistance.

Dow stutters post 20,000

The excitement around Dow Jones 20,000 has masked the fact the index has gone nowhere since mid-December. There is plenty of short-term support available, at 19,855, 19,769 and then 19,708, but below the latter we could see a swift move to 19,408.

The 20,000 mark still remains the key area to watch for on the upside. 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.