Levels to watch: FTSE 100, DAX and Dow

The indices are pushing despite recent weakness, with the FTSE 100 and DAX outperforming amid GBP and EUR weakness.

FTSE 100 continues consistent ascent

The FTSE 100 continues to move gradually higher, in what has been a remarkably consistent ascent over the past week. With the price rallying into trendline resistance this morning, there is a chance we will see the price revert to mean.

The current rising wedge formation we are looking at points towards a potential breakdown, should the price fall below the 7358 swing low. Until then, the current uptrend is expected to persist, with retracements bought into.

DAX rallies into key resistance zone

The DAX is rallying back into the 12,611-12,640 resistance zone this morning, following a retracement throughout much of last week. This resistance zone is going to be crucial in determining the forthcoming directional bias, with a break above 12,640 pointing towards further upside to come.

Alternatively, given the importance of this resistance zone, there is also a chance of a reversal from this level, with an hourly close below 12,463 required to negate the current ascent.

Dow attempts to rebound from trendline support

The Dow Jones pulled back into trendline support over the past week, with the price attempting to rebound overnight. The index has been showing signs of a resurgence recently and, although we witnessed the recent pullback, there is a good chance it will soon turn higher once more.

Look out for a break above 24,695, and in particular 24,849, as a bullish resurgence signal. To the downside, we would need to see a break below trendline support to continue the recent retracement.

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