Levels to watch: FTSE, DAX and Dow

Indices continue to consolidate, with rangebound markets providing little clues of where and when the breakout will come. Until then, it seems sensible to trade the range.

Source: Bloomberg

FTSE 100 continues to consolidate

The FTSE has seen a relatively choppy few days, with price failing to break significantly higher or lower. To the upside, we have a clear resistance zone around the 7010 mark, while downside support appears to be found around the 6920 region.

As such, the most recent price action gives us little clues as to where the break will come. That being said, we have seen price break lower from a similar period of consolidation and as such, the medium-term conveys a bit more of a bearish slant to proceedings. In any case, it makes sense to continue looking for price to respect this range until we see a breakout above or below the upper or lower thresholds.

DAX continues to trend lower

The DAX remains within a downward trend following a reversal from the crucial 10,807 mark. More recently, we have seen price holding up at 10,628, which is a clear hurdle that needs to be overcome.

The downtrend remains intact for now and further losses appear likely. However, should we see an hourly close above 10,717, then this view would be negated.

Dow Jones looks toppy as range top approaches

The Dow has once again rallied into the top of its recent range, with the crucial 18,245-18,264 resistance zone looming.

There is little reason to believe we are about to break higher from this pattern and as such, a bearish view is in play for a move back down towards the 18,092-18,060 support region. 

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