Levels to watch: FTSE, DAX and Dow

A hawkish batch of Fed minutes have provided a continued bearish tone for indices, which are expected to move lower once more today.

Source: Bloomberg

FTSE rally unlikely to last
The index is rising this morning, following on from another leg lower after a largely hawkish set of Fed minutes yesterday. Despite early gains, we are clearly trending lower over the past 48 hours, following a rally into range resistance around 6220. As such, we are looking for a return to the lower end of the range, around 6060.

With that in mind, any rally into the 61.8% or 76.4% Fibonacci retracements are likely to be sold into, for a move lower. Key support levels are 6101, 6095 and 6060. A closed hourly candle above 6136 would negate this bearish short-term view. 

DAX selling off towards trendline support
The index appears to already be on its way, with the index turning sharply lower overnight. The biggest test to this move is likely to come at an ascending trendline support, dating back to 7 April.

Should we return to this level, watch out for intraday bullish reversal signals, or else a closed hourly candle below 9800 to signify a bearish breakdown. The current bearish view is held unless we see an hourly close above 9908.

Dow hesitancy continues amid downtrend
The index has been seeing very choppy price action over the past 48 hours, following on from yesterday’s FOMC minutes. However, this is expected to resolve once more to the downside, given the overall downtrend in place over the past month. 

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