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Levels to watch: FTSE, DAX and Dow

Further downside looks likely for the indices, yet this could soon provide a buying opportunity.

Dax figure
Source: Bloomberg

FTSE breaks key resistance level

The FTSE is breaking higher this morning, with the index pushing through the highly notable 7452 level. This break through the late June swing high means we are now looking at a recovery for the index, with a move back to the previous high of 7600 looking increasingly likely.

As such, for now, we look to have instigated the beginning of a renewed bullish phase, where a break back below 7357 would be required to negate that view.

DAX rallying from Fibonacci support

The DAX is rallying from the 76.4% retracement, coming off the back of hitting the same retracement as resistance. Given the shift we have seen for the FTSE, this potential higher low could indicate that we are paving the way for a recovery for the DAX.

As such, further upside is expected, yet the real telling signal would be a break through 12,680. 

Dow rallies back towards all-time highs

The Dow Jones only managed to retrace by 50% before pushing higher once more, with the index looking highly likely to reach a new all-time high today.

The uptrend clearly remains intact and thus bullish positions are preferred on pullbacks. Watch out for a break back below 21,466 to undermine that bullish outlook.

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