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.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
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
Gold
Bearish
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
GBP/USD
Mixed
USD/JPY
Bullish
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
  • The $AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here: https://t.co/LkEFJViPWY https://t.co/sofO135ElG
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data. Get your ASEAN currencies market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/ZGFaQQ3Hr2
  • The #Euro is the big driver here for DXY as it is 57% of the index. It is rising now and trying to break above the March 27 high at 11147. Get your $EURUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/73SaL5AeXD
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
  • The @ecb will likely boost its Pandemic Emergency Purchase Program at Thursday’s meeting of its Governing Council; a move that could give the #Euro a lift. Get your currencies market update from @MartinSEssex here: https://t.co/I4PbmJNG1z https://t.co/hu6Ld1KdDB
  • $GBPUSD doesn’t have the cleanest set of technical indications, but #USD may give indications if it can break its trading range via the $DXY. Get your currencies market update from @PaulRobinsonFX here: https://t.co/PrC9wAaXvU https://t.co/vHYHflwqR3
  • The ongoing contraction in US production may keep #oilprices afloat in June as crude output falls to its lowest level since October 2018. Get your crude #oil market update from @DavidJSong https://t.co/jj1bMLX0DF https://t.co/O9NOqbfHkb
FTSE 100: What Are The Levels Which May Induce Volatility?

FTSE 100: What Are The Levels Which May Induce Volatility?

2016-03-23 08:12:00
Alejandro Zambrano, Market Analyst
Share:

Talking Points

  • The FTSE 100 has been trading sideways for three weeks. What are the levels which may induce volatility and a more distinctive trend?
  • No macro data on deck until this afternoon. A Bloomberg news poll projects U.S. New Homes Sales to rise by 3.2% MoM, from -9.2% in January.

The FTSE 100 has now spent more than three week’s trading around the same levels. While this is hardly encouraging for day trading, low volatility episodes tend to be followed by high ones. We also note that the longer a market trades sideways, the stronger a potential move could be, usually following a break to the range. The EURCHF debacle of January 2015 is an extreme example of this idea.

Which are the critical levels for the FTSE 100?

The highest price point over the last three weeks is the March 18 high, while the lowest level over the same period is last week’s low of 6006.

On a break to 6006, we may see volatility pick up as described above, as not only is it the lower end of the range over the last few weeks, but is also the trend defining level.

A break to last week’s low would place all long positions since March 2 at a loss, as all of them have been exercised above the low. This could stress traders to shift out their losing long positions and thereby trigger even lower prices.

A break to last week’s low of 6006 may therefore turn the trend bearish and generate a slide to the next support level, which is the February 24 low of 5839.

On price remaining above the low of last week, the FTSE 100 may drift higher. However, it is important to note that a break to the March 18 high might not ensure a strong resurgence in volatility. We saw on March 4, March 17, and March 18 that a higher high did not in these cases spur the trend to firm.

Instead, the FTSE 100 may continue to drift higher but without a strong pick up in volatility. The last resistance level, where price reversed, was the December 29 high of 6322, and could be where the FTSE 100 may now be headed.

U.S. New Homes Sales on Tap

With no macro data on tap this morning, trading in the FTSE 100 may be dominated by flows and technical trading. In the afternoon, U.S. New Homes Sales is projected to rise by 3.2% MoM according to a Bloomberg news poll.

Download the DailyFX Analysts' 1Q forecasts for the Dollar, Euro, Pound, Equities and Gold

FTSE 100 | FXCM: UK100

Please add a description for the image.

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.

DISCLOSURES

News & Analysis at your fingertips.