The FTSE 100 May Be About To Break Its Range
- The FTSE 100 is trading sideways between last week’s low of 6002 and the March 4 high of 6221.
- The next resistance level following the March 4 high of 6221 is the February 12 high of 6449.
- Last week’s low of 6002 is support and followed by the February 24 low of 5839.
The FTSE 100 is trapped between last week’s low of 6002 (ECB rate meeting low) and the March 4 high of 6221.
On a breach to the upper end of this range, price may reach the December 29 high of 6322 followed by the December 12 high of 6449.
On a break to last week’s low of 6002, the bullish trend may end.
In this scenario price may resume its multi-month bearish trend and may decline to the February 24 low of 5839, followed by the yearly low of 5495.
The DAX 30 is, at the time of writing, breaking higher which hints at a potential bullish break to the FTSE 100. The daily correlation over the last six months lies between the two variables at +0.77.
E.U. Industrial production is on tap this morning and might have some impact on the FTSE 100 via the DAX 30. There are no other major data releases on tap today.
Download the DailyFX Analysts' 1Q forecasts for the Dollar, Euro, Pound, Equities and Gold
FTSE 100 | FXCM: UK100
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
Struggling with Trading? Join a London Seminar
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.