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FTSE 100, DAX and Dow remain volatile ahead of busy week

FTSE 100, DAX and Dow continue to consolidate, with raft of economic releases bringing expectation of a forthcoming breakout.

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FTSE 100 rallies towards resistance zone

The FTSE 100 has managed to regain ground from trendline and Fibonacci support (61.8%).

We have since managed to regain ground, with the index currently passing through the 76.4% resistance level. That points towards a likely rally into the 7600 level, to continue the trend of higher highs. This broadening formation is a difficult one to trade, and it is a case of looking for breakouts through notable levels to signal the end of the pattern. Such a breakout would come with a rise through 7621. Otherwise, this rally is likely to turn lower from the zone between the 7600-7621 region.

FTSE 100 chart Source: ProRealTime
FTSE 100 chart Source: ProRealTime

DAX gradually regaining ground after sharp decline

The DAX has been gaining ground after a sharp decline into the 76.4% Fibonacci support level.

There is a risk that this rally could falter given the slow ascent we are currently seeing. However, a significant bearish picture would require a break below 12,193, which would complete a head and shoulders formation. Otherwise, a bullish short-term bullish picture remains unless price falls below the 12,353 support level.

DAX chart Source: ProRealTime
DAX chart Source: ProRealTime

Dow consolidates after respect of key support

The Dow Jones rebounded from the key 27,068 support level on Thursday, with the price remaining within the same 27,068-27,402 consolidation zone that has been in play for over two weeks.

The breakout from this range will provide us with direction, yet for the short-term we are likely to see the index rise towards the upper end of this zone.

Dow Jones chart Source: ProRealTime
Dow Jones chart Source: ProRealTime

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