Levels to watch: FTSE, DAX and Dow

The indices turn higher, in an attempt to break out of this recent downtrend. However, we have seen no signs that this trend is over and as such, a bearish view remains in place across the board.

US trader in stock exchange
Source: Bloomberg

FTSE continues to trend lower

The FTSE is in the process of pushing higher this morning, with gains in the US feeding through to FTSE futures last night. However, this rally is likely to be brief, with the downtrend clearly intact. Certainly today’s Bank of England decision has the potential to derail it and as such, it could be worth taking off short-term positions around the event.

However, for now the downtrend is still in play and we would need to see an hourly close back above 6675 to negate this bearish view. The next key support level is at 6613.

DAX rallying into Fibonacci resistance

The DAX has been rallying heavily over the past 24 hours, with price pushing into the head and shoulders neckline resistance. With the 76.4% retracement also up ahead, it seems likely we will see the DAX turn lower once more in the coming hours. We would need to see a break through 10,344 to negate this recent downtrend. 

Dow expected to turn lower once more

The Dow Jones has rallied into the 76.4% retracement, within a clear downtrend. Given the trend in place, this seems like an interesting area to get short once more, with a break through 18,401 required to negate this downtrend.

A signal that we are set to move lower would come with an hourly close below 18,335, providing greater confidence of an impending sell-off.

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