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The index stopping short of the 6900 level leaves the market focusing on how soon the all-time high of 6930, last seen in 1999, can be reached and indeed breached.
Certainly, central bank action or indeed the lack thereof from the perspective of the Bank of England could well be the catalyst for a move higher in the UK benchmark.
Any signalling from the European Central Bank that quantitative easing is at least being considered could also help to ramp up the gains.
6830 supporting FTSE
As it stands, the FTSE is looking a little toppy with the daily relative strength index rising to 78. Above the 6870 marker leaves the route open for another test of the 6900 level. The recent resistance at 6830 should act as a barrier to any true downside.
The one-hour chart looks to be presenting us with a flag-style continuation pattern right now so a break through the 6900 would take us on a journey higher towards 6956 in the near term.
DAX unable to break through 9611
The DAX is looking a little weak in early trade, down 0.46% and unable to break through the 9611 level. The trendline support from the June 2012 lows has now reverted to resistance and this is why the index topped out yesterday at 9685. A break through 9685 targets the 9730 level.
Support lies at the 50- and 200-day moving averages currently at 9538, with rising support from the August 8 lows coming in around the 9500 level. Any breach and daily close below 9476 (50% Fibonacci level) would be viewed as bearish and target the 9400 level.
Dow moves away from intraday highs
The Dow Jones has faded back from the intraday highs of 17,160 and is consolidating around the 17,070 level. The 17,018 level remains the key metric so any significant declines in the index through here could see the psychological level of 17,000 breached.
A move through the 17,160 level may result in a measured move towards 17,300. On the one-hour chart, price action is trading below all major moving averages and the concurrence of these metrics is reflecting the lack of any volatility in the past few hours. A close though the 17,090 puts the bias on a retest of the range’s highs, while a break back through 17,060 would indicate that the 17,018 level will be challenged.