Euro Stoxx 50, FTSE 100 Outlook: Rally to Challenge Key Resistance
Euro Stoxx 50, FTSE 100 Price Analysis & News
Euro Stoxx 50: Closing the Gap
The Euro Stoxx 50 has made a firm break away from its 50% fib retracement to trade at its highest level since early March. In turn, eyes are for an extension to 3194, which would mark a closing of the early March gap. Alongside this, topside resistance is situated at 3246 (61.8% fib), failure to break could see a return to 3050.
Euro Stoxx 50 Price Chart: Daily Time Frame
FTSE 100: Testing Resistance
Upside in the FTSE 100 remains capped at last week’s high (6234), which also coincides with the 50% Fibonacci retracement from the Q1 sell-off. However, given the persistent rally across equity markets, upside risks remain, which in turn could see a test of 6400. That said, near term support resides at 6030-50 keeping the bullish momentum intact, although failure to hold raises the risk of a pullback to 5890 (38.2% fib).
FTSE 100 Price Chart: Daily Time Frame
--- Written by Justin McQueen, Market Analyst
Follow Justin on Twitter @JMcQueenFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.