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'There is still scope for further upside in the near term. The long-term downtrend currently stands at approximately 1.35 and it is still possible that we could see that tested before the dollar begins to reassert itself.' – Charles Stanley (based on PoundSterlingLive)

Pair's Outlook

The GBP/USD currency pair weakened on Tuesday, resulting in the consolidation trend's preservation. Consequently, the British Pound should edge lower for another day, with the 1.29 major level likely to be the bottom, despite the 20-day SMA and the weekly S1 forming support around 1.2930. On a slightly larger scale the given pair should be unable to drop under 1.2830, where the consolidation trend's lower border, the lower Bollinger band, the weekly S2 and the wedge's support line all form a strong demand cluster. This point is also likely to be able to shift polarity and spark sufficient GBP-buying for a solid surge above 1.30, eventually.

Traders' Sentiment

Traders retain a neutral outlook towards the Sterling, with 52% of all open positions being short. Still 56% of all orders are to buy the Pound.

'The rise in Treasury yields is supporting the dollar. It appears that speculative buying of Treasuries has run its course, with Trump concerns and geopolitical risks no longer fresh news.' – Daiwa Securities (based on Reuters)

Pair's Outlook

The USD/JPY pair edged higher yesterday, but managed to overperform, as it breached the immediate resistance area. As a result, the US Dollar is now likely to keep appreciating against the Yen, even though technical indicators are unable to confirm that. The nearest area to limit the gains now rests around 112.60, represented by the monthly R1, the 20 and the 100-day SMAs, but the Buck could experience trouble reaching that far up. Technical indicators in the daily timeframe, however, are unable to confirm the possibility of the positive outcome, but in the longer timeframes they do suggest the Greenback is to keep climbing higher.

Traders' Sentiment

There are 55% of traders holding short positions (previously 60%), while the share of buy orders remains unchanged at 55%.

'Gold could face more pain if tonight's FOMC (Federal Open Market Committee) minutes shows that the Fed is on course for two to three more rate hikes this year.' – Jeffrey Halley, OANDA (based on Reuters)

Pair's Outlook

The yellow metal's price remains above the 1,250 mark, as the strong support cluster just below that level holds its ground. However, fundamental shifts in the market are possible, as US monetary policy makers will affect the strength of the bullion from the US Dollar's side. The FOMC meeting minutes will reveal, how many and what kind of Federal Funds Rate decisions might take place in the future. Although, from a technical perspective the surge of the bullion should continue, as the SMAs should push it higher soon.

Traders' Sentiment

SWFX market sentiment remains almost neutral, as 52% of open positions are short. However, 67% of trader set up orders are to buy the bullion.

EUR/CHF : 1.0947




 

EUR/CHF: Major wave 5 trough ended at 0.8426 and correction has commenced from there for subsequent gain towards 1.1400-1.1500.




As the single currency has retreated after meeting resistance at 1.0988 earlier this month, retaining our view that consolidation below this level would be seen, however, reckon downside would be limited to 1.0860-65 and bring another rise later, above said resistance at 1.0988 would confirm recent rise has resumed and extend further gain to another previous resistance at 1.1001, break there would extend the rise from 1.0622 low (2016 low) to 1.1018, then 1.1050 but reckon resistance at 1.1107 would limit upside and price should falter well below 2016 high at 1.1129. 
 
 



To recap our preferred count, the decline from 1.6828 (end wave (B)) is labeled as the beginning of wave (C) which should unfold as an impulsive move with 1: 1.5326, 2: 1.6377 and wave 3 is sub-divided into (i): 1.4300, (ii): 1.5880 and wave (iii) is still unfolding with (1): 1.4577, (2): 1.5448 and wave (3) is an extended 3rd with i: 1.5006, ii: 1.5383, wave iii: 1.3073, then wave iv ended at 1.3925 and wave v at 1.3073, wave (4) ended at 1.3925 and wave (5) has ended at 1.2765 which also marked the low of wave (iii) and wave (iv) has ended at 1.3835 and wave (v) as well as larger degree wave 3 has ended at 1.0075. The selloff from 1.2650 signals wave 4 has ended there and we are taking a view that the wave 5 could also have ended 0.8426, hence consolidation is seen with mild upside bias for rebound to 1.1000 first, then towards 1.1400.
 

 


On the downside, expect pullback to be limited to 1.0860-65 and bring another rise later. Below 1.0825-30 would defer and suggest top is possibly formed, bring weakness to said support at 1.0792 but only a daily close below there would add credence to this view, then further fall to 1.0780 and possibly previous minor resistance at 1.0720 would follow. Looking ahead, only a drop below 1.0720 would suggest top is formed instead, risk weakness towards said support at 1.0656 first.

Recommendation: Hold long entered at 1.0905 for 1.1105 with stop below 1.0805.

The long-term downtrend started from 1.9626 (Apr 1985) to 1.4166 (Sep 1995) is treated as wave (A) with A:1.6285 (Dec 1987), B: 1.9342 (May 1992) and C: 1.4166, then wave (B) ended at 1.6828 with A: 1.7147 (Feb 1997), B: 1.4398 (Sep 2001), C: 1.6828 (Nov 2007), therefore, wave (C) is now in progress with the breakdown indicated as above. This wave (C) already met indicated downside target at 1.1455/60 and 1.1300, it could have ended at 0.8426, consolidation with mild upside bias is seen for gain to 1.1000 and later towards 1.2000.

The pair emerges above daily cloud on Wednesday, on extension of Tuesday's strong rally that left long-tailed and long-body daily bullish candle.

Today's break above 111.81 pivot (daily cloud top / Fibo 38.2% of 114.36/110.23) was bullish signal but the rally was so far capped by falling daily Tenkan-sen line (112.05), showing hesitation at psychological 112.00 barrier.

In addition, a plethora of barriers that lies above and consisting of 10SMA (112.26), 20SMA (112.42) and 100SMA (112.58) may limit recovery rally.

Daily studies are mixed and see minimum requirement on close above daily cloud to signal further upside. However, lift above daily MA barriers is needed to confirm bullish continuation.

Otherwise, risk of recovery stall and fresh weakness could be expected on early upside rejection.

Release of US data and FOMC minutes, due later today would give more clues about near-term direction.

Res: 112.05, 112.26, 112.42, 112.58
Sup: 111.61, 111.37, 110.74, 110.50

AUD/USD     –  0.7469

AUD/USD – Wave 5 of C and (B) has possibly ended at 1.1081




Although aussie edged higher after staging a rebound from 0.7329 and marginal gain from there cannot be ruled out, as this move is viewed as retracement of recent decline, reckon upside would be limited to 0.7556 resistance and bring another decline later, below support at 0.7388 would signal the rebound from 0.7329 has ended, bring retest of this level first. Looking ahead, only a break below 0.7329 would signal the decline from 0.7750 top is still in progress, hence further fall to 0.7300, then 0.7270 would follow, however, oversold condition should prevent sharp fall below 0.7200-10 and price should stay well above previous chart support at 0.7158, bring rebound later. 


We are keeping our count that top has been formed at 1.1081 (wave 5 of V) and major correction (A-B-C-X-A-B-C) has commenced, indicated downside targets at 0.7945 (61.8% Fibonacci retracement of entire rise from 0.6007-1.1081) and 0.7750 had been met and downside bias is seen for further weakness to 0.6800, then 0.6700 but reckon 0.6500 would hold from here.



Our preferred count is that the rally from 0.6007 to 0.7270 (7 Jan 2009) is marked as wave A, the retreat to 0.6248 (2 Feb 2009) is wave B and the subsequent upmove is labeled as wave C with wave (iii) and wave (iv) ended at 0.8265 and 0.7700 respectively and wave (v) as well as 3 ended at 0.9407, then wave 4 ended at 0.8066 (instead of 0.8578). The wave 5 has met our indicated projection target of 1.1060 and could ended at 1.1081, this level is now treated as the peak of wave (C) as well as larger degree wave B, hence major fall in wave C has commenced, our initial downside target at psychological support at 0.7000 has just been met and further weakness to 0.6500 would be seen later.



On the upside, whilst initial marginal recovery from here cannot be ruled out, reckon resistance at 0.7566 would limit upside and bring another decline. A daily close above this level would dampen our bearishness and signal a temporary low is formed instead, bring a stronger rebound to another previous resistance at 0.7592, break there would add credence to this view, bring correction of recent decline to strong resistance at 0.7611 first. 



Recommendation: Hold short entered at 0.7490 for 0.7290 with stop above 0.7590



Our alternate count on the daily chart treated the top formed in 2008 at 0.9851 could be a larger degree wave I and was followed by a deep and sharp correction in wave II to 0.6007 and wave III is unfolding from there.

The long-term uptrend started from 0.4775 (2 Apr 2001) with an impulsive structure. Wave I is labeled as 0.4775 to 0.9851 (15 Jul 2008), wave II has ended at 0.6007 (Oct 2008) and wave III is still in progress which may extend further gain to 1.1265.

The Trump administration has presented its 2018 budget plan to Congress last evening. The budget plan calls to slash $3.6 trillion in government spending, mainly reducing the funding for healthcare and social benefits (such as Medicaid, SNAP, pensions for government officials) and Environmental Protection Agency funds.

The cuts are to be used for funding to boost economic growth and to reduce the US deficit. Nevertheless, it will result in numerous needy American citizens losing vital benefits.

The plan forecasts economic growth will be increased to 3% after passing the budget cuts, tax reform, regulation reform and infrastructure plans. However, following the performance of Trump’s administration since taking office, it seems difficult for any of Trump’s plans to be passed smoothly.

Average US annual economic growth is ranging between 1.9% – 2.2%, a 3% target seems to be a big challenge to achieve. The scale of the 2018 budget cut is substantial with a distinct possibility that Congress will reject the plan in its entirety or pass only portions of it.

The dollar index has fallen approximately 2.67% since May 12th, hitting its lowest level of 96.68, post the US presidential election, on May 22. On Tuesday May 23rd, following the announcement of the budget cuts, the dollar index moved higher breaking the resistance level at 97.00 and touching a 3-day high of 97.35 early on Wednesday morning.

On Tuesday, EUR/USD retreated from a 6-and-a-half-month high of 1.1267, breaking the psychological level at 1.1200 as corrective pressures intensified with consolidation around 1.1180 on early Wednesday trading. USD/JPY rebounded around 0.68% from the support at 111.00, hitting a 1-week high of 112.04 on Wednesday morning. USD/JPY consolidates below the psychological resistance level at 112.00.

FOMC May Meeting Minutes will be released at 19:00 BST this evening. Per the CME FedWatch tool, the probability for a rate hike in June rose to 83.1% after the release of the 2018 budget plan. That said, markets are assuming the Fed will stick to its rate hike pace regardless of Trump’s Russia leak scandal and soft economic data. Keep an eye on the Minutes, we will likely get further clues about a June rate hike and updated economic outlook. Be aware that it will likely cause volatility for USD and USD crosses.

Moody’s cut China’s sovereign credit rating from Aa3 to A1 due to fears over rising debt levels, causing the falls in Chinese stock markets.

EUR/JPY - 125.17

Recent wave: wave v of (C) ended at 94.12 and major correction in wave A has ended at 149.79

Trend: Near term up

New strategy :

Stand aside

Position: -
Target:  -
Stop:-

Although the single currency has staged a strong rebound after finding good support at 122.56 (last week’s low) and marginal gain from here cannot be ruled out, reckon upside would be limited and resistance at 125.82 would hold from here. Only a break above this level would confirm  recent upmove has resumed and extend further gain to 126.20-30 and possibly 126.60-70 but reckon 127.00-10 would hold from here due to near term overbought condition.

In view of this, would not chase this rise here and would be prudent to stand aside for now. Below 124.10-15 would bring retreat to 123.35-40 but reckon downside would be limited to 123.00 and said support at 122.56 should hold, bring another rebound. Only a break below this support would add credence to our view that top has been formed, bring retracement of recent upmove to 122.00-10 and then 121.50-60 but downside should be limited to 121.20-30.

Our latest preferred count is that wave (ii) is ABC-X-ABC which ended at 123.33 and wave (iii) is unfolding with wave iii ended at 100.77, followed by wave iv at 111.57 and wave v as well as the wave (iii) has ended at 97.04, followed by wave (iv) at 111.43 and wave (v) has ended at 94.12 which is also the end of the larger degree v, this also implied the major wave (C) has also ended there, hence major correction has commenced from there with (A) leg unfolding in its lower degree wave c which has possibly ended at 145.69. Under this count, A-B-C wave (B) has commenced with A leg ended at 136.23, wave B at 143.79 and wave C has possibly ended at 149.79.

Our larger degree count is that the decline from 139.26 is wave (C) and is sub-divided into a diagonal triangle i-ii-iii-iv-v with wave i - 105.44, wave ii- 123.33, wave iii - 97.03, wave iv - 111.43, followed by the final wave v as well as the end of wave (C) at 94.12, this also mark the bottom of larger degree wave B. Under this count, major rise in wave C has commenced as an impulsive wave with minor wave III ended at 145.69, wave V is still in progress for further gain to 150.00. Having said that, this so-called wave V could well be the first leg of larger degree 5-waver wave C and this wave C should bring at least a retest of wave A top at 169.97 (July 2008).

A surprise sovereign downgrade of China by Moody's sees iron ore collapse taking the Australian Dollar with it.

If ever there was a lesson about how intertwined the global economy is in the 21st century, it is the sometimes love/hate relationship between China and Australia. Both are mutually dependent on each other from a supply and demand point of view. In China's case, they import just about everything that Australia digs out of its vast ground area to fuel their primary industries. Think coal, copper and most especially iron ore. For Australia, conversely, China is by far its largest trading partner. Consuming vast quantities of both various mineral ores as well as primary products such as meat and dairy to fuel the factory of the word. Given that China's capital account can by no stretch of the imagination be considered open, despite the rhetoric, it can be very hard to express a trading view on the world's 2nd largest economy. Both the onshore and offshore Chinese currencies, the CNY and the CNH, are carefully managed by the PBOC.

Given that China's capital account can by no stretch of the imagination be considered open, despite the rhetoric, it can be very hard to express a trading view on the world's 2nd largest economy. Both the onshore and offshore Chinese currencies, the CNY and the CNH, are carefully managed by the PBOC. The symbiotic nature of the Australian and Chinese relationship means that the Australian Dollar is a 'high beta' in financial market speak to developments within the Chinese economy. In plain English, this really means that because China's capital account is closed, the Australian Dollar (AUD) is used to reflect developments in China.

One could say that when China is booking (read importing lots of raw materials), the AUD tends to move higher. Sometimes a lot higher. When China catches a cold(imports less raw materials), the AUD catches tuberculosis. Asia, including China, was thoroughly wrong-footed today when Moody's rating agency surprisingly downgraded China's sovereign debt from Aa3 to A1. It was the first downgrade of China by them since 1998.

08:18 *(CN) MOODY'S CUTS CHINA SOVEREIGN RATING TO A1 FROM AA3 (one notch); revises outlook from negative to stable (first Moody's cut since 1989) Moody's Investors Service has today downgraded China's long-term local currency and foreign currency issuer ratings to A1 from Aa3 and changed the outlook to stable from negative. The downgrade reflects Moody's expectation that China's financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows. – Source TradeTheNews.com

The markets wasted no time in China reacting to this with the Dalian Commodity Exchange Industrial MAtarial Futures all falling.

Both the coking coal and coke futures (used in steel and power production I believe) fell -1.80% and 2.70% respectively.

However, it was the Dalian iron Ore Futures that felt the fury, plunging 6.70% in a straight line as per the chart below.

AUD/USD

The AUD is for obvious reasons, sensitive to all three of the above commodities, but most especially to iron ore. It duly obliged in a 'high beta' fashion and fell in a straight line from 7480 to 7435 before making an anaemic recovery as the Asia session ended. Equities also felt the chill wind with the Shanghai Composite falling (-0.40%) along with the Hang Seng (-0.30%). Surprisingly the ASX 200 finished the day unchanged suggesting the effects of the downgrade may be transitory ahead of tonight's FOMC minutes.

Looking at the chart below, we can see that AUD has fallen back into its down channel and is flirting with its upper boundary at 7460.

Resistance lies above here at yesterday's high at 7517 before we encounter the important 7540/7455 region. Home to the 100 and 200-day moving averages.

Support lies at 7435 followed by the 9th May low at 7330. Long term support is denoted by a trendline stretching back to January 2016, which today is at 7305.

Summary

The China downgrade and subsequent fall in the iron ore futures indeed 'ironed out' the AUD today. However, the ASX closed flat, not a bad result when China iron ore futures dropped nearly seven percent. It may imply the AUD sell-off could be transitory unless we get a hawkish FOMC minutes this evening.

EUR/USD

The greenback closed generally higher in a dull Tuesday, although gains were shallow, and uneven across the board. The recovery came in the American afternoon, backed by a recovery in Treasury yields and as Wall Street traded once again in the green. The EUR/USD pair topped at 1.1267 early London, but was unable to extend its gains, despite the EU later released more encouraging macroeconomic data. The May Markit PMIs showed that German and the EU numbers held near six-year highs, confirming strong growth in the region. The services sector indexes ticked lower, but still came in strong. Additionally, the German IFO survey indicated that business confidence in the country remains strong, up to a record of 114.6 following April's revised 113.00, with both the assessment of the current situation and expectations sharply up.

In the US, the Markit preliminary PMIs presented a similar behavior, with the manufacturing sector expanding, but the services one shrinking. The Composite PMI resulted at 56.8, matching April's final reading. New Home sales, however, edged sharply lower after the strong March reading, down by 11.4% in the month against expectations of a 1.5% decline. Fed's Kashkari was on the wires, expressing concerns over the decline in core inflation, adding to the latest dovish rhetoric.

The EUR/USD pair settled a few pips below 1.1200, and seems poised to correct lower, although in the longer term, is too early to confirm an interim top. In the 4 hours chart, the price has found some support around a bullish 20 SMA, whilst technical indicators turned sharply lower from overbought levels, currently pressuring their mid-lines and ready to break lower. The pair has an immediate support at Monday's low of 1.1161, while a stronger one comes at 1.1080. Approaches to this last will likely attract buying interest. Back above 1.1220, the risk turns towards the upside, with room then to extend the advance up to 1.1300.

Support levels: 1.1160 1.1120 1.1080

Resistance levels: 1.1200 1.1260 1.1300

USD/JPY

Having traded within a tight range ever since the week started, the USD/JPY ended up this Tuesday, surging alongside with US Treasury yields. The recovery, however, was not enough to change the neutral stance seen over these last few days, as the pair remained well below 112.00, ending around 111.50 after peaking at 111.78. Yields advanced after a local auction, although the movement was quite shallow, with the 10-year benchmark settling at 2.26% from previous 2.25%. BOJ´s Governor Kuroda will be on the wires during the upcoming Asian session, but is not expected to surprise markets with a change in the monetary policy bias. Technically, the 4 hours chart shows that the price has settled midway between the 50% and the 61.8% retracement of the latest bullish run, while moving averages remain flat, as technical indicators keep lacking directional strength, currently within neutral territory. The risk remains towards the downside, albeit only a downward acceleration through 111.00 will confirm additional declines. The bearish pressure will likely ease on a break above 112.00, but gains are hardly expected to extend beyond 113.00 this week.

Support levels: 111.00 110.50 109.90

Resistance levels: 111.65 112.00 112.45

GBP/USD

The GBP/USD pair eased at the beginning of the day, hit by a terror attack that took place in Manchester late Monday. The pair traded as low as 1.2952, but managed to bounce back, although held below the 1.3000 threshold for most of the day. There was a short-lived up-tick that reached 1.3030 around London's fix, but the pair settled around 1.2980, indicating that speculative interest is now preferring to sell spikes, somehow anticipating additional declines ahead. There were no big news coming from the UK this Tuesday, and the calendar will remain light until next Thursday, when the UK will release a revision of Q1 GDP. Still, little action is expected around Pound's crosses ahead of the UK election, and fresh news over Brexit negotiations. Technically, the neutral stance seen on previous updates persist with the 4 hours chart showing that the price keeps hovering around a directionless 20 SMA, whilst the Momentum indicator heads lower, right below its 100 level, and the RSI aims higher around 52, diverging from each other but both lacking strength. Below 1.2890, the pair can extend its decline towards 1.2830, the base of the wider range that will likely keep holding ahead of the big events to come.

Support levels: 1.2950 1.2910 1.2880

Resistance levels: 1.3025 1.3060 1.3100

GOLD

Gold prices retreated from near a three-week high of $1.263.72 a troy ounce reached at the beginning of the day, settling around 1,250.90, not far from its daily low. There were little news affecting particularly gold, and those released, were in fact gold positive, as Fed's Kashkari made some dovish comments, expressing concerns over the recent decline in core inflation, and therefore weighing on chances of a rate hike next June. Nevertheless, the commodity fell, as the dollar gathered momentum against most of its rivals during the US afternoon. Technically, the daily chart shows that indicators have turned south within positive territory, whilst the price holds above its 20 and 100 DMAs, both converging today at 1,241.10, still lacking directional strength. Shorter term, and according to the technical picture has turned bearish, given that technical indicators have entered negative territory, maintaining their downward strength, whilst the price broke below its 20 SMA, now flat around 1,255.45, providing resistance for the upcoming session.

Support levels: 11,245.40 1,237.40 1,229.90

Resistance levels: 1,255.45 1,264.95 1,273.10

WTI CRUDE OIL

Crude oil prices advanced further this Tuesday, with West Texas Intermediate futures settling at $51.40 a barrel, its highest since mid April. The commodity recovered from a daily low of 50.56, achieved early US session as the White House unveiled its budget proposal, which includes reducing national debt by selling off half of the nation's Strategic Petroleum Reserve and allowing drilling in the Alaska National Wildlife Refuge. Speculation that the bill will hardly pass the Congress have taken out some of the pressure, whilst hopes of another drawdown in US stockpiles and of an extension of OPEC's output cut backed a new leg higher. Daily basis, the commodity has advanced further above its 100 DMA after closing around it for the first time in a month this Monday, whilst technical indicators aim modestly higher near overbought readings, supporting additional gains. In the 4 hours chart, a bullish 20 SMA keeps leading the way higher, now providing support around 50.70, while technical indicators have turned horizontal, but within positive territory.

Support levels: 51.10 50.60 50.00

Resistance levels: 51.90 52.60 53.20

DJIA

US equities followed the lead of their European counterparts, ending the day with modest gains. The Dow Jones Industrial Average advanced for a fourth consecutive day, up 0.21% or 43 points, to 20,937.91. The Nasdaq Composite added 0.08% and settled at 6,138.71, while the S&P added 4 points, to 2,398.42. Within the Dow, Goldman Sachs led advancers, adding 1.68%, followed by Caterpillar which added 1.34%. Home Depot, on the other hand, led decliners with a 0.67% loss, followed by Walt Disney that shed 0.57%. The daily chart for the Dow shows that the index recovered above its 20 DMA that anyway remains flat, whilst the RSI indicator entered positive territory, now heading north around 55. The Momentum however, holds below its 100 level, reflecting the limited intraday advance. Short term, the 4 hours chart presents a generally positive stance, as the benchmark holds above all of its moving averages, with the Momentum also faltering, heading south above its mid-line.

Support levels: 20,918 20,858 20,806

Resistance levels: 20,961 21,009 21,040

FTSE100

The FTSE 100 ended the day at 7,485.29, down 11 points or 0.15%, trimming early gains as the Pound bounced from a fresh weekly low. Mood was subdued amid the terror attack in Manchester, further weighed by rising public sector net borrowing, up in the month by the highest amount since 2014. Babcock International led advancers, adding 2.97%, followed by EasyJet that gained 2.52%. The losers' list was led by Kingfisher that lost 2.42%. The advance in Wall Street helped the London benchmark to regain the 7,500 level in after-hours trading, overall maintaining the positive tone seen on previous updates. Daily basis, the Footsie is still way above a bullish 20 SMA, whilst technical indicators hold near overbought readings, but with no clear directional strength. In the 4 hours chart, an intraday decline was quickly reverted after the index touched its 20 SMA, now around 7,481, while technical indicators retreated modestly from near overbought readings, not enough to suggest an upcoming bearish move.

Support levels: 7,481 7,455 7,410

Resistance levels: 7,534 7,570 7,605

DAX

The German DAX added 39 points this Tuesday, closing at 12,659.15, with financials and energy-related equities leading the advance. Strong German macroeconomic figures backed the rally, as business confidence in the country, according to the IFO survey, peaked at 114.6 in May, its highest on record. E.ON led gainers with a 3.66% gain, followed by ThyssenKrupp which added 2.0% Among banks, Deutsche added 1.12%, whilst Commerzbank closed 0.76%. Daimler was the worst performer, down by 1.29% as auto-parts sales sunk in the US, affecting the sector. The technical picture for the DAX is modestly positive, as it keeps hovering around a horizontal 20 SMA, whilst technical indicators barely hold above their mid-lines, without directional strength. In the 4 hours chart, the technical picture is quite alike, as the index managed to surpass a still bearish 20 SMA, whilst technical indicators head nowhere within neutral territory.

Support levels: 12,625 12,598 12,557

Resistance levels: 12,675 12,729 12,781