Levels to watch: FTSE, DAX and Dow

Indices break higher once more, with the DAX and Dow in particular seeing substantial gains at the open. However, with the BoE decision later today, things will look substantially different this time tomorrow. 

Data board being watched by traders
Source: Bloomberg

FTSE breaks higher following overnight consolidation

The FTSE 100 has broken to a new intraday higher high, following a gradual drift higher overnight. This continues the trend of higher highs and higher lows. With that in mind, further gains are expected, unless we see an hourly close below the 6650 support level.

That being said, with the Bank of England (BoE) decision later today, it may make sense to be more cautious than normal considering the unpredictable volatility that is likely. The next key resistance levels are 6753 and 6767.

DAX rallies towards major resistance level

The DAX has seen a sharp move higher this morning, marking an end to the consolidation of the past two days. Crucially, this rally came in towards the massive 10,121 level. This has acted as both support and resistance on a number of occasions in the past six months.

With that in mind, this level is expected to be pivotal for price action today, where an hourly close above looks likely to spark another leg higher, while a rejection could mark a potential turning point. Such a move would likely come from today’s BoE meeting. Until then, the bullish outlook holds unless we see an hourly close below 9900.

Dow breaks higher once more

The Dow Jones is clearly enjoying life up in the clouds, for this morning has once more seen fresh highs printed with a sharp rally at the European open. Of course, there are no major resistance levels to refer to and as such we will be watching for the creation of higher highs and higher lows to continue this bullish momentum.

As such, a bullish view remains unless we see an hourly close below 18,310.

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