Levels to watch: FTSE 100, DAX and Dow

Global stocks are on the rise, yet with key hurdles to overcome, further selling still remains a possibility.

FTSE 100 pushing higher amid GBP weakness

The FTSE 100 has been turning higher towards the end of the week, with a weakening pound sending it up.

This is expected to persist for the time being, yet until we break through the 7175 mark, it looks likely that we could be looking at a retracement here. As such, a bearish turn remains a distinct possibility until we break through the 7175 level.

DAX likely to turn lower once again

The DAX is consolidating in the wake of a rebound yesterday. The creation of lower highs and lower lows following a 76.4% retracement points towards a possible turn lower before long.

As such, a bearish outlook is in play unless we see a break above 11,609. This means that we could see short-term gains, yet unless we break at the 11,568 level, another downward turn looks likely.

Dow rebounds from deep retracement

The Dow Jones is showing signs of a recovery following a deep retracement that saw the price fall between the 61.8% and 76.4% Fibonacci levels.

The ability to break through the first major swing high of 25,498 is key in determining whether this is the beginning of a bullish phase. Given that we are currently trading around the short-term 76.4% resistance at 25,330, it makes sense to watch out for a break of that resistance, or a possible turn lower from here.

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