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Levels to watch: FTSE 100, DAX and Dow

The indices are losing ground, with FTSE 100 losses being joined by DAX and Dow weakness. However, with the US uptrend clearly defined, this could provide a bullish buying opportunity before long.

FTSE 100 looks set for further losses

The FTSE 100 is falling once more with a bearish, engulfing pattern forming off the back of an overnight rebound. With the break below 7535 and 7520 support levels, it looks likely we will see further downside to come from here.

On this shorter-term chart, there is a good chance that we will see a break lower rather than a rally above 7526. Should we see that swing high broken, then this would point towards further upside over the near term.

DAX breaks lower from Fibonacci resistance

The DAX is breaking lower once again this morning, following on from the drop below 12,497 support. This sell-off came about from the confluence of the 61.8% retracement of the fall from 12,888, alongside the 76.4% retracement of the sell-off from 12,740.

With the index having only sold off less than 50% of the recent rally, further downside looks likely irrespective of whether we are retracing or reversing the recent gains. Look towards 12,298 and 12,226 as key Fibonacci support levels should such downside come into play.

Dow downside set to continue

The Dow Jones has been selling off following a drop below the 26,032 support level. That drop points towards a retracement of the 25,606-26,167 rally, with the 61.8% Fibonacci still some way from the current price.

With that in mind, there is a good chance we will see further downside over the near term. However, unless we break below 25,606, any near-term downside would provide a buying opportunity to get into the wider bullish trend.

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