Levels to watch: FTSE 100, DAX and Dow

The indices are turning lower, with an overnight rally into the 76.4% Fibonacci retracement level sparking a downward shift.

FTSE 100 turning lower from Fibonacci resistance

The FTSE 100 has tumbled once more following a sharp resurgence in the pound overnight.

This has seen the market turn lower from a second 76.4% Fibonacci retracement level, with the index now moving into a key support level. A break below the 7076 support level would provide us with a bearish continuation signal, where 7039 represents the next level of support.

FTSE 100 chart

FTSE 100 chart

DAX turning lower after deep retracement

The DAX has started to turn lower from the 76.4% retracement level, hinting at another potential bearish shift for the index.

The breakdown from a rising wedge formation signaled a likely bearish phase coming into play, with the subsequent rally looking like a retracement. With the index turning lower, there is a good chance we will see a break back below 11,401 to confirm that we are due a wider retracement of the 10,862 rally. A break through 11,692 would be required to negate this bearish outlook.

DAX chart

DAX chart

Dow reversing lower from prior breakdown level

The Dow Jones is similarly reversing to the downside after a strong rebound at the start of the week.

This took us back into the prior breakdown level of 25,763, which is now being respected as resistance. This has been accompanied by the 76.4% retracement level, pointing towards a bearish shift from here. As such, watch for a downward move, with a break through 26,168 required to negate that bearish outlook.

Dow Jones chart

Dow Jones chart


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