Daily Pivots: (S1) 1.0051; (P) 1.0089; (R1) 1.0127; More.....

USD/CHF is still bounded in range of 0.9966/1.0140. Intraday bias remains neutral for the moment. With 0.9966 support intact, further rise is expected. Above 1.0140 will turn bias to the upside and target a test on 1.0342 resistance. Based on neutral medium term outlook, we'd be cautious on topping at around 1.0342. Meanwhile, break of 0.9966 will indicate completion of the rebound from 0.9860. And intraday bias will be turned back to the downside for 0.9860.

In the bigger picture, prior rejection from 1.0327 resistance argues that USD/CHF is staying in a medium term sideway pattern. In any case, decisive break of 1.0342 resistance is needed to confirm underlying strength. Otherwise, we'll stay neutral in the pair first. In case of another fall, we'd expect strong support from 0.9443/9548 support zone. Meanwhile firm break of 1.0342 will target 38.2% retracement of 1.8305 to 0.7065 at 1.1359.

Daily Pivots: (S1) 112.93; (P) 113.48; (R1) 114.28; More...

USD/JPY is still staying inside range of 111.58/114.94 and intraday bias remains neutral. Price actions from 118.65 are viewed as a corrective move. Firm break of 114.94 resistance will indicate that it's completed, on a double bottom pattern (111.58, 111.68). In such case, intraday bias will be turned to the upside for retesting 118.65. Also, the whole rise from 98.97 is likely resuming. On the downside, in case of another fall, we'd still expect strong support from 38.2% retracement of 98.97 to 118.65 at 111.13 to contain downside and bring rebound.

In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. The impulsive structure of the rise from 98.97 suggests that the correction is completed and larger up trend is resuming. Decisive break of 125.85 will confirm and target 61.8% projection of 75.56 to 125.85 from 98.97 at 130.04 and then 135.20 long term resistance. Rejection from 125.85 and below will extend the consolidation with another falling leg before up trend resumption.

Daily Pivots: (S1) 0.7641; (P) 0.7670; (R1) 0.7704; More...

AUD/USD is still staying in range of 0.7605/7740 and intraday bias remains neutral. Another rise cannot be ruled out. However, considering bearish divergence condition in 4 hour MACD, upside should be limited by 0.7777/7833 resistance zone and bring near term reversal. On the downside, break of 0.7605 support will indicate that rise from 0.7158 has completed already and turn bias back to the downside for 55 day EMA (now at 0.7570) first.

In the bigger picture, we're still treating price actions from 0.6826 low as a correction. And, as long as 38.2% retracement of 0.9504 to 0.6826 at 0.7849 holds, long term down trend from 1.1079 is expected to resume sooner or later. Break of 0.6826 low will target 0.6008 key support level. However, firm break of 0.7849 will indicate that rise from 0.6826 is developing into a medium term rebound, rather than a sideway pattern. In such case, stronger rise should be seek to 55 month EMA (now at 0.8186) and above.

Daily Pivots: (S1) 1.3286; (P) 1.3322; (R1) 1.3360; More...

Intraday bias in USD/CAD remains on the upside as rebound from 1.2968 continues. As noted before, pull back from 1.3598 has completed at 1.2968 already. Break of 1.3387 will target a test on 1.3598 resistance next. Also, break there will extend the larger rally from 1.2460 towards next fibonacci level at 1.3838. On the downside, though, below 1.3164 minor support will turn bias back to the downside for 1.2968 support instead.

In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We'd look for reversal signal there to start the third leg. Break of 1.2968 wold at least bring at retest of 1.2460 low. However, sustained trading above 1.3838 would pave the way to retest 1.4689 high.

Strong risk appetite boosted US markets to new record highs overnight. DJIA jumped 303.31 pts, or 1.46%, to close at 21115.55. S&P 500 rose 32.32 pts, or 1.37%, to close to 2395.96. NASDAQ also gained 78.59 pts, or 1.35%, to end at 5904.03. All three indices closed at records. Positive sentiments also pulled treasury yields higher with 10 year yield rose 0.105 to close at 2.463 and revived underlying bullishness. Dollar was boosted by increased speculation of March Fed hike as the Dollar index hitting at high at 101.97. The break of 101.76 in the dollar index confirmed resumption of recent rebound from 99.23. However, development in the currency markets doesn't warrant decisive momentum in the greenback yet. EUR/USD is held above 1.0493 support, AUD/USD above 0.7605 support. USD/CHF is limited below 1.0140 resistance and USD/JPY is held below 114.94 resistance. The strength in the greenback is more apparent in GBP/USD and USD/CAD only. More evidence is needed to confirm bullishness in the greenback.

Fed Brainard: Rate hike appropriate "soon"

Markets continued to raise bet on a rate hike by Fed in March. Fed fund futures are now pricing in 66.4% chance of it, comparing to 65.4% a day ago. Fed governor Lael Brainard said yesterday that "we are closing in on full employment, inflation is moving gradually toward our target, foreign growth is on more solid footing and risks to the outlook are as close to balanced as they have been in some time." She noted "bear-term risks to the United States from abroad appear to have diminished." And, "recoveries are gaining traction in China, Europe and Japan, in part reflecting greater confidence in their respective policy environments." Hence, "assuming continued progress, it will likely be appropriate soon to remove additional accommodation, continuing on a gradual path."

Fed Beige Book positive but not overwhelming

Fed released the Beige Book economic report based on information collected from early January through mid February. The reported noted that some district reported "widening labor shortages." At this point, wages only rose "modestly or moderately" though, in general. A few districts reported "some pickup in the pace of wage growth." Meanwhile, "businesses were generally optimistic about the near-term outlook but to a somewhat lesser degree than in the prior report." Overall, all 12 Fed districts reported "modest-to-moderate" growth and inflation cooled a little bit.

BoC on hold

As widely anticipated, BOC kept its monetary policy unchanged with the overnight rate at 0.5%, the Bank rate at 0.75% and the deposit rate at 0.25%. The central bank acknowledged that both global and domestic economic indicators were consistent with its projection of improving growth laid out in January. It also note Canadian growth in 4q16 came in 'slightly stronger than expected'. However, policymakers maintained a cautious tone noting that 'material excess capacity' remained and that the central bank is 'attentive to the impact of significant uncertainties weighing on the outlook'. Therefore, the risks and slacks in the economy justified leaving the policy rate at exceptionally low level.

On the data front, Japan monetary base rose 21.4% yoy in February. Australia trade surplus narrowed to AUD 1.3b in January, building approvals rose 1.8% mom. Swiss will release GDP and retail sales in European session. Germany will release import price index. UK will release construction PMI. Eurozone will release PPI, CPI and unemployment rate. US will release Challenger job cuts and jobless claims in US session. Canada will release GDP.

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3286; (P) 1.3322; (R1) 1.3360; More...

Intraday bias in USD/CAD remains on the upside as rebound from 1.2968 continues. As noted before, pull back from 1.3598 has completed at 1.2968 already. Break of 1.3387 will target a test on 1.3598 resistance next. Also, break there will extend the larger rally from 1.2460 towards next fibonacci level at 1.3838. On the downside, though, below 1.3164 minor support will turn bias back to the downside for 1.2968 support instead.

In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We'd look for reversal signal there to start the third leg. Break of 1.2968 wold at least bring at retest of 1.2460 low. However, sustained trading above 1.3838 would pave the way to retest 1.4689 high.

Economic Indicators Update

Key Points:

• Price action enters a support zone.
• RSI Oscillator strongly oversold.
• Short term retracement back towards 1.2346 likely in the coming session.

The Cable has been on a roller coaster over the past few days as price action broke down and dropped through the short term channel formation. However, despite the intraday bias being bearish, the currency is currently reaching the limits of its decline and we are likely to see a rebound in the coming session.

In particular, the defining indicator is the RSI Oscillator which has been trending sharply lower broadly in line with price action’s recent machinations. However, the oscillator has now entered oversold territory and there is subsequently building pressure for some relief. Additionally, price action has also entered a historically important area, from late 2016, which has seen reversals occurring. Subsequently, the 1.2259 support level will be relatively critical in the upcoming session if any retracement is to occur.

However, the medium time frame could be a different story with a key swing point at 1.2346 remaining in-tact largely consigning the pair to further declines. In fact, there really isn’t any sign of any form of medium term bottoming just yet which may suggest a deeper decline in play. Subsequently, sustained trading below the 61.8% Fibonacci retracement level is likely to mean further break downs to come.

Fundamentally, the Cable has a busy few days ahead with the UK Construction and Services PMI figures due out. In particular, Friday’s Services PMI is likely to be closely watched by the market and will need to exceed the forecast of 54.1 to reverse its current trajectory.

Regardless of the medium term view, the extent of the short term decline has likely run its course especially given the currently oversold RSI Oscillator. In addition, there are plenty of reasons to see a retracement given that price action has also just entered a historic reversal and liquidity zone. Subsequently, the most likely scenario is where the Cable rises back to challenge the support/resistance zone around 1.2346, and possibly back inside the intraday equidistant channel that had formed between 1.2400 and 1.2500. However, keep a close watch on any penetrative moves below the 1.2259 support area as this could be signalling further declines ahead.

Key Points:

• Post-breakout rally running out of steam.
• ABC wave could be taking place.
• Technical bias remains bullish in the medium to long-term.

Following its breakout from that falling wedge, the USDCAD has absolutely been on fire and has now moved all the way back to the 1.3356 mark in only a handful of sessions. However, the pair may need to cool off in the near-term given some mounting resistance to the recent bullish phase. As a result, it's worth taking a look at some of the technicals to form a bias moving forward.

Firstly, we need to establish whether the Loonie's momentum has run dry or if we are instead going to see further gains moving ahead. Well, as shown on the daily chart below, the rally seems to be stalling somewhat as it approaches the 1.3356 level which, coincidently, happens to be the 61.8% Fibonacci retracement. Combined with a highly overbought stochastic reading, the probability of seeing a reversal to the downside is looking fairly good which could have some interesting implications for the pair.

Indeed, moving into a decline could mean that we are in the early stages of a corrective wave formation. Specifically, an ABC wave could be on the horizon and this would broadly be in line with the Loonie's long-term technical bias. Of course, we will need some more confirmation before committing to this forecast and this would come as a result of seeing the near-term downtrend reach the 1.3214 mark and subsequently reversing.

At the 1.3214 level, support should kick in strongly, hence the rather early suggestion of a corrective ABC wave. This support would largely be a result of the 38.2% Fibonacci retracement and the 100 day moving average which should, at its current trajectory, provide some dynamic support around this price. All going according to plan, this will inspire a reversal to the upside and the completion of a ‘C' leg that could extend all the way to the 1.3470 mark.

Ultimately, there seems to be a rather solid chance of a seeing this ABC wave take hold in the imminent future. More precisely, the combination of both strong bullish and bearish sentiment alongside the robust zones of support and resistance should result in the desired price action. Whether gains extend beyond the forecasted end of the pattern is anyone's guess but, if they do, it could mean we are faced with an Elliot wave capable of seeing the upside of the channel challenged. As a result, the Loonie could certainly be worth keeping an eye on moving ahead.

As widely anticipated, BOC kept its monetary policy unchanged with the overnight rate at 0.5%, the Bank rate at 0.75% and the deposit rate at 0.25%. The central bank acknowledged that both global and domestic economic indicators were consistent with its projection of improving growth laid out in January. It also note Canadian growth in 4q16 came in 'slightly stronger than expected'. However, policymakers maintained a cautious tone noting that 'material excess capacity' remained and that the central bank is 'attentive to the impact of significant uncertainties weighing on the outlook'. Therefore, the risks and slacks in the economy justified leaving the policy rate at exceptionally low level.

In the discussions of economic developments, BOC remained wary that 'exports continue to face the ongoing competitiveness challenges described in the January MPR'. It added that despite improvement in the employment situation, 'subdued growth in wages and hours worked continue to reflect persistent economic slack in Canada, in contrast to the US'. The central bank also reiterated its vigilance over 'significant uncertainties' and risks weighing on the outlook. We believe one of the biggest uncertainties and risks facing Canada is the new US administration tax and trade policies.

US President Donald Trump failed to surprise the market at his State of the Union address earlier this week. While he reiterated that plans to make historic tax reforms and increase infrastructural spending worth of as much as US$1 trillion, the details are lacking. On tax reform, Trump indicated that his team 'is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone' and would also 'provide massive tax relief for the middle class'. Although the fact that Trump had not specifically mentioned border adjustment tax (BAT) at the joint session address might diminish the chance that such tax would be implemented, the risks cannot be ruled out. We believe Canada would be seriously affected if BAT is enacted given the close US-Canada trade relations.

According to the US trade office, Canada is US' second largest goods trading partner (after China) with US$575B in total (two way) goods trade during 2015. The market would be closely watching the detailed tax plans, scheduled for release in coming weeks, to see if BAT would be adopted. If yes, if key Canadian exports, i.e. energy, would be exempted from the new tax.

Indeed, there are several scenarios that could happen to the new US-Canada trade relations. In case BAT is adopted, Canada's export-reliant economy would be severely affected. We expect Canadian dollar to fall around 5% against US dollar. BOC would turn even more dovish, making further rate cut possible. However, if BAT is adopted with exemption in the energy sector, BOC would remain cautious, monitory the impact on non-energy exports. However, policymakers would be less urgent to cut rates further. The best scenario for Canada is no BAT in US' new tax reform plan. In the case, BOC would likely change to a more neutral tone from the current dovish one. The chance of a BOC rate hike in late-2017 is also increased.

STOCKS

Markets react positively to the Trump speech yesterday. Almost all indices are trading higher and looks potentially bullish for the near term except Nifty which is trading at crucial levels and is yet to decide on near term direction.

Dow (21115.55, +1.46%) has risen sharply breaking above the immediate resistance on the 3-day candles. Now there is high potential on the upside towards 21300-21600 in the near term. Upward rally may continue in the coming sessions.

Dax (12067.19, +1.97%) has finally moved up sharply to test our early target of 12000. It could continue to move up towards 12200 before seeing a pause.

Nikkei (19643.62, +1.29%) has broken from the contracting phase to move on the upside and while that sustains, it could rally towards 20000 in the near term. This has negated our expectation of an initial fall and could take up Dollar-Yen to higher levels in the near term.

Shanghai (3240.00, -0.21%) is trading slightly lower today but overall is contained within the near term uptrend. While above 3225, there is scope of an up move towards 3275-3300 in the medium term.

Nifty (8945.80, +0.75%) is trading just below the crucial resistance levels and seems to be consolidating for a few sessions now. We would still expect a corrective dip in the near term unless a confirmation above 8960-9000 levels is seen. A break above 9000, if seen could turn very bullish for the coming weeks.

COMMODITIES

Gold (1247) was almost unchanged and hovering around the pivot (1246) of its trading range of 1217-1274. Recent strength in dollar index (101.89)could drag the yellow metal towards 1217. A close below 1230 could also hamper its recent upward momentum.

Silver (18.32) is holding its crucial support of 18, and we will remain bullish until it is holding the same. Defiantly the bullish momentum become weak and a possibility of a decline towards 18 levels can’t be ruled out. A close below 17.80 could be trend reversal.

Copper (2.74) is trading around its pivot of 2.75 of its recent trading range of 2.60-83. It is holding its upward trend line support at 2.65-68 since October 16. We have US Unemployment data at 7.00 p.m IST, which could influence the price of copper and silver.

Brent (55.560) and WTI (53.74) both are trading within their narrow ranges of 55-56.10 and 53-5461 with no directional bias. Surplus of 0.6M barrel in US weekly crude oil inventory (1.5M) has impacted negatively on the prices.

FOREX

Major currencies (except Aussie) weaken on fresh Dollar strength post the Trump speech. This may continue for some sessions before a small pause is seen.

Dollar Index (101.90) could face immediate resistance near 102 which if breaks on the higher side could turn bullish towards 103. We need to watch price action near 102 which would decide immediate movement in the other currencies. A recovery from 102 would bring back strength in the major currencies in the next few sessions.

Euro (1.0535) may test 1.05 in the near term. In case that holds, we could see a bounce back towards 1.055-1.06; else downside potential is open towards 1.040-1.035 for the long term.

Dollar-Yen (114.035) has broken the immediate resistance near 113.75 and is headed higher for the coming sessions. The upside break on Nikkei and the strength in Dollar has lead to Yen weakness and while the Nikkei looks bullish for the near term, Dollar-Yen could head towards 114.50-114.80 soon.

Pound (1.2278) has fallen in line with our expectation breaking below our immediate target of 1.23. While the US-UK 10Yr differential continues to fall, the Pound could be headed towards 1.2100-1.2085 levels in the near term. (Refer to Interest Rates section below)

Aussie (0.7656) is stuck within the 0.7600-0.7750 region and could continue to remain so in the near term. While support at 0.7625 holds, we may expect a rise in Aussie towards 0.7700-0.7720 levels.

Dollar-Rupee (66.8250) could face immediate resistance near 66.95/90 which if holds could keep the currency pair ranged within 66.65-66.85 region. Overall broad range of 66.50-66.95 may hold for the next few sessions.

INTEREST RATES

The German-US 2Yr (-2.14%) has bounced back a bit from levels near -2.21% seen yesterday. If the bounce manages to take the differential towards -2.10% or higher, it could indicate that the Euro is likely to bounce back from 1.05 levels. Note that the German-US 10YR (-2.18%)is headed lower and may take some time to bounce back. Medium term trend for the yield-differential looks bearish.

The US-UK 10Yr (-1.28%) has been clearly indicating a fall in the Pound since the last few days which has reflected in the currency yesterday. Unless the differential starts moving up, it would be difficult for the Pound to rebound from current levels.

The US yields continue to rise sharply. The 10YR (2.46%) and the 30YR (3.06%) are trading just near immediate resistance and while those holds, we may expect a dip in the near term. A break above 3.10% (on the 30Yr yield) and 2.5% (on the 10yr yield) could turn very bullish for the medium term.

The German yields have bounced from immediate support levels and could move higher for some time before seeing a pause.

EUR/USD

Late Wednesday, US President Donald Trump speaking before the Congress and a couple of FED speakers in separated events, gave the greenback and equities a boost, sending Wall Street to record highs. The EUR/USD pair plunged to 1.0513, but the dollar's buying euphoria eased in the US afternoon, with the pair recovering up to the 1.0560 region, where it stands by the end of the day. Demand for USD-linked assets was triggered by a conciliatory tone of the new US president when addressing to policy makers, pretty much reiterating his campaign pledged, without getting into much details. What actually backed the rally was a confirmation that tax cuts will reach also corporations, and not only the mid-class, and a $1 trillion plan for infrastructure investment.

In the data front, EU final Markit manufacturing PMIs for February, confirmed the growth path the area got into last December as the index came at 55.4, up from 55.2 in January, its highest in almost six years, although below market's expectations of 55.5. In Germany, growth reached its highest level since May 2011, with the PMI up to 56.5 from January's 56.4, while inflation jumped above 2.0% in the country, for the first time since August 2012. German headline came in at 2.2% YoY in February versus 1.9% YoY in January. Finally in the US, Core PCE inflation surged to 1.9% in January, from previous 1.6%.

From a technical point of view, the EUR/USD pair presents a moderate bearish risk in the short term, given that in the 4 hours chart, the price settled below all of its moving averages, with the 20 SMA just a few pips above the current level, and technical indicators recovering some ground within bearish territory. The lower low for the week also favors additional declines as long as the prices remains below the 1.0600 level, and with a break below 1.0520 required to confirm further declines.

Support levels: 1.0590 1.0565 1.0520

Resistance levels: 1.0635 1.0660 1.0710

USD/JPY

The USD/JPY pair advanced up to 114.04, its highest since mid February after trading as low as 111.68 on Tuesday, on renewed optimism the new US administration will boost growth and inflation, and following comments from several US FED officers, which lifted odds for a March rate hike up to 80%. In separated events, San Francisco Williams and New York Dudley signaled that a rate hike is on the table, on accelerating inflation and employment at its best level in years. The rally triggered by US President Trump in stocks fueled the advance of the pair, although the upward momentum eased in the US afternoon, with the USD/JPY pair now trading around 113.50. News coming from Japan were encouraging, as the Nikkei Manufacturing PMI continued to expand in February to 53.3 from January's 52.7, marking the highest reading since March 2014. Also, supporting the rally in the pair was a sharp comeback in US Treasury yields that are still the main motor for the JPY. If yields retreat from their recent highs, the pair will likely follow-through. Technical readings in the 4 hours chart indicate that the pair may correct lower, as indicators are retreating strongly from overbought levels, but the price has recovered above its 100 and 200 SMAs, with the largest at 113.30, and offering an immediate support. The risk will turn towards the downside in the short term, on a break below 113.00.

Support levels: 113.00 112.50 111.95

Resistance levels: 114.00 114.40 114.85

GBP/USD

The GBP/USD pair fell to its lowest in six weeks, printing 1.2280 early US session, as a soft UK Markit manufacturing PMI pushed the pair below February's low, triggering stops and fueling the slide, later backed by US FED's favorite measure of consumer prices, the PCE price index that climbed to 1.9% from a year earlier, not far from the 2% percent target that was last met in April 2012. The UK manufacturing sector index in February printed 54.6, its lowest in three months. The Pound came under pressure earlier this week on speculation that Scotland will try to leave the UK after the kingdom opted for a hard Brexit. Now trading around 1.2300, technical readings maintain the risk towards the downside after the bearish breakout of February's range. In the 4 hours chart, the 20 SMA has accelerated its slide, currently around 1.2410, while technical indicators have lost downward momentum, but remain well into negative territory. The pair has its next relevant support at 1.2260, the 61.8% retracement of the January rally, with little in the way below it, until 1.2100.

Support levels: 1.2260 1.2225 1.2170

Resistance levels: 1.2345 1.2390 1.2440

GOLD

Gold fell to $1,236.83 a troy ounce intraday, as increased chances of a FED March hike weighed on the commodity. The metal bounced, however, as dollar's demand eased mid American afternoon, ending the day around 1,246.90, pretty much flat. Despite spot set a lower low and a lower high daily basis, the dominant bullish trend has been barely affected, white surprising considering odds for a March hike rose to around 80%. That said, it will take the slightest dovish comment from any FED officer to see the commodity recovering its shine. From a technical point the daily chart shows that the price bounced strongly after testing its 20 DMA, while the Momentum indicator resumed its advance within positive territory, and the RSI indicator also turned south after correcting overbought conditions. In the 4 hours chart, the price bounced from a bullish 100 SMA, although a bearish 20 SMA caps the upside whilst technical indicators have recovered within negative territory, maintaining their upward slopes, but still not enough to confirm further gains. A recovery above 1,255.25, the 61.8% retracement of the post-US election decline, however, will likely see the metal testing its recent highs around 1,263.80.

Support levels: 1,238.90 1,230.00 1,222.10

Resistance levels: 1,255.25 1,263.80 1.273.20

WTI CRUDE

Crude oil prices ended the day marginally lower, with West Texas Intermediate futures closing at $53.79 a barrel, weighed by news that US stockpiles inched higher for an eighth consecutive week, although the decline was limited, as the build was smaller-than-expected. According to the EIA, the country added 1.501M barrels last week, against expectations of 3.079M. Commercial stockpiles stand at 520.2 million barrels, exceeding the seasonal maximum. WTI has continued to make no progress from the technical point of view, stable above a horizontal 20 DMA in the daily chart and with technical indicators hovering around their mid-lines, lacking directional strength. In the 4 hours chart, the price has settled below a modestly bearish 20 SMA, but above a flat 100 SMA, whilst technical indicators lack directional strength slightly below their mid-lines. The commodity will likely continue in its 50/55 range, with increasing bearish odds coming from the macroeconomic background.

Support levels: 53.40 53.00 52.50

Resistance levels: 54.75 55.30 56.00

DJIA

After closing in the red on Tuesday, US equities rallied to all-time highs late Tuesday, as the "Trump-trade" came back to life following US president speech before the Congress. The DJIA traded as high as 21,016 ahead of Wednesday's opening, ending the day at 21.115.42, up by 303 points or 1.46%. The index set a record high intraday of 21,168. The Nasdaq Composite and the S&P also closed at record levels, with the first up 1.35%, to 5,904.03, and the second adding 1.37%, to 2,395.95. Financials were among the best performers worldwide, and within the Dow, JPMorgan Chase led gainers, up 3.47%, followed by American Express that closed 2.39% higher. Wall-Mart changed course and was the worst performer, ending the day 0.72% lower. Technical readings in the daily chart have accelerated their advances within extreme overbought levels, with the RSI indicator currently at 88, yet a downward corrective move remains unlikely for now, as market sentiment favors additional advances. In the shorter term, and according to the 4 hours chart, technical indicators retreated within overbought levels, but the benchmark is far above its moving averages, maintaining the upside favored.

Support levels: 20,779 20,724 20,668

Resistance levels: 20,855 20,900 20.940

FTSE 100

The Footsie rallied pass February high, and ended at record highs, as equities' traders worldwide cheered Trump's words late Tuesday. A weaker Pound added to the FTSE 100 advance that managed to close at 7,382.90, up daily basis by 121 points or 1.64%. Persimmon led advancers, adding 5.91% while Ashtead Group followed, ending the day 5.74%. Mining-related equities, however, closed in the red as gold fell sharply intraday, with Randgold Resources shedding 2.69% and Fresnillo 0.87%. The daily chart shows that the upward potential increased, as technical indicators turned higher after several days of consolidating within positive territory, and extended far above all of its moving averages. In the 4 hours chart, technical indicators pulled back modestly within overbought territory, but the index is also above all of its moving averages, with the 20 SMA gaining upward strength, all of which supports additional advances on a break above 7,397, the intraday high.

Support levels: 7,238 7,195 7,160

Resistance levels: 7,285 7,315 7,342

DAX

The German DAX surged by whopping 237 points or 1.97%, to close the day at 12,067.19, level last seen in April 2015. Strong local data supported the rally, as German's inflation is expected to be at 2.2% in February according to preliminary estimates, whilst the German manufacturing PMI reached its highest level since May 2011 in February according to Markit, up 56.8 from 56.4 in January. All components closed in the green, with banks leading the way higher, as Deutsche Bank added 5.31%, while Commerzbank gained 4.13%. The daily chart for the benchmark shows that it stands some 20 points above the mentioned close, having extended well above a bullish 20 DMA after failing to break below it, whilst the RSI indicator heads sharply higher around 68, and the Momentum indicator also turned higher, all of which supports some further gains ahead. In the 4 hours chart, technical indicators have partially lost upward momentum, but remain in overbought territory, whilst the index is also developing far above all of its moving averages, supporting the longer term perspective.

Support levels: 12,031 11,982 11,938

Resistance levels: 12,100 12,148 12,183