Levels to watch: FTSE 100, DAX and Dow

Morning gains in Europe are bringing the FTSE 100 and DAX back into key resistance. With recent downtrends still intact, any gains could be short-term in nature. 

FTSE 100 rallying back into notable resistance level

The FTSE 100 has managed to break through trendline resistance, with the price moving back into the notable 7061 resistance level.

An hourly close above there would point towards the possibility of a rally into the 61.8% retracement area of 7098. While the short-term uptrend points towards further gains, there is a strong chance we are seeing a retracement in play, with the price needing to break above 7256 to negate this wider downtrend.

DAX moves into trendline resistance

The DAX has started turning higher again this morning, with the price moving into trendline resistance.

Crucially, with the price gaining ground from a key support zone around 11,704, there is a chance we could see further upside to come. The key level to watch is the 12,043 swing high, where an hourly close above there would point towards a move into the 61.8% retracement of 12,181.

Dow consolidates after drop into Fibonacci support

The Dow Jones has been consolidating after falling back into the 76.4% retracement support level.

The ability to break below that level (23,728) would point towards a drop into the 23,504 swing low and a continuation of the recent downtrend. The respect of that Fibonacci support level shows a clear hurdle needed to overcome in order to maintain the bearish trend. We would need to see a break above 24,450 to negate this wider downtrend.

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