News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Fitch on China Property Developers - View will turn negative if sales in H2 21 fall below that achieved in H2 19 and/or if sharp fall follows through to H1 22 - Government policies in sector remain tight and show no sign of imminent loosening
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/B0Y3XJhkRS
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/1xhewkdV21
  • (USD Weekly Tech) US Dollar Dominant Uptrend Back In Focus: EUR/USD, USD/JPY, NZD/USD, USD/CHF https://www.dailyfx.com/forex/technical/article/special_report/2021/09/20/US-Dollar-Dominant-Uptrend-Back-In-Focus-EURUSD-USDJPY-NZDUSD-USDCHF.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/IpwzBGCi7P
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/qv8keXFzHZ
  • Join @IlyaSpivak at 22:00 EST/2:00 GMT for his cross-market weekly outlook webinar. Register here: https://t.co/MKGHc9ae64 https://t.co/JMlT0Wn3DK
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/sbejkd7XT5
  • *Reminder: Weekly Strategy Webinar Monday morning at 8:30am ET - https://t.co/lxd5fZnn4H Mid-Week Market Update on Wednesday at 9:30am ET - https://t.co/8SFBJxNZrA
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/CJR61cljOe
  • (AUD Weekly Tech) Australian Dollar May Wilt, Downtrends Resume: AUD/USD, AUD/JPY, AUD/NZD, AUD/CAD https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/09/19/Australian-Dollar-May-Wilt-Downtrends-Resume-AUDUSD-AUDJPY-AUDNZD-AUDCAD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/DedoOKJMXh
FTSE 100 Forecast: Vulnerable Below 6,800 Despite Ascending Channel

FTSE 100 Forecast: Vulnerable Below 6,800 Despite Ascending Channel

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • Global equities are pushing higher this morning ahead of Yellen’s address to US policymakers
  • The UK sees a small reduction in new infection and death rates and could see lockdown measures eased in April
  • FTSE 100 fails to take full advantage of bullish sentiment and remains trapped under the 6,800 mark

There seems to be a risk-on move this morning in global markets after a strong finish to yesterday’s session on the back of a US holiday has led to gains in Asia.

But after an early optimism in the first week of the year, equity markets have cooled off and are trading with more caution as the optimism about vaccinations has been offset by increased lockdown restrictions due to the continued rapid spread of the virus.

Today’s focus will be on incoming US Treasury Secretary Janet Yellen’s address to US policymakers as she tries to make a case for Biden’s stimulus package. Whilst a $1,400 increase in the stimulus seems so to be fully sold, Yellen will need to convince fiscally conservative lawmakers that an increase in the minimum wage will not cause an unsustainable rise in US debt, and it is a necessary measure in the short-term to stimulate the economy. I expect equity markets to keep an eye on this development.

Advertisement

The FTSE 100 is slowly building upside momentum as the British index was unable to take advantage of yesterday’s afternoon bullish run in Europe. A reduction in the number of daily infection and death rates seems to offer some solace to investors as the UK remains the European country with the highest vaccination rate.

That said, there are increased concerns that as more people get the vaccine we could see a change in behaviour, and social distancing measures may be relaxed, leading to a possible spike in cases before the vaccine takes its full effect.

FTSE 100 Daily Chart

FTSE 100 Forecast: Vulnerable Below 6,800 Despite Ascending Channel

From a technical perspective, the FTSE 100 remains weakened whilst below the 6,800 line, despite the lower bound of an ascending wedge keeping short-term support in place. A daily close above 6,800 would cement the case for FTSE buyers to attempt a new break of the 76.4% Fibonacci (6,895) after we saw a failed attempt at the beginning of the year. If so, the 7,000 mark will be the next objective for short-term bulls, at which point we may expect to see some strong resistance around the 7,200 area.

To the downside, short-term support remains on the lower bound of the ascending wedge. A break below this line may be an attempt to push the FTSE 100 below the 6,600 level, at which point it becomes vulnerable to a bearish run towards the horizontal support line at 6,255. Before this area, there are a few supports that may stop bearish pressure, firstly at the 61.8% Fibonacci (6,489) and then the low of Dec 21st at 6,311.

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES