The upper boundary of the sideways channel at 1347 was tested overnight and held, for the third time, confirming it as a key resistance level. Should this level give way, we’d expect to see prices rise quite quickly towards 1400 as stops are taken out and trades take short-covering positions. There is resistance at 1385 and again at 1400. Should the market move beyond 1350, we don’t expect to see prices exceed 1400.
In the near-term, we still favour the short-side with a fall back towards 1300 likely. There is support at 1324, 1318, 1309 and 1300 – below that we see support at 1285 and 1272.