FTSE 100 Remains Flat Following Batch of Eurozone Data
- The FTSE 100 remains capped by Wednesday’s high of 6343.
- A resistance level above Wednesday’s high of 6343 is last week’s high of 6432.
- Support levels are yesterday’s low of 6221, followed by the April 7 low of 6106
- U.S. PCE Core, Chicago PMI and Final U. of Michigan Sentiment are on deck.
This morning the FTSE 100 remained capped by Wednesday’s high of 6343. Price has been trading lower after it reached the April 21 high of 6432 and Wednesday’s high of 6343 is the last swing high of this short-term downtrend.
Resistance levels above Wednesday’s high of 6343 are last week’s high of 6432 and the November 11 high of 6461. Support levels are yesterday’s low of 6221, followed by the April 7 low of 6106 and the April monthly low of 6060.
We note that price has been choppy over the last few days. The choppy price action could be linked to the short-term down trend in place since April 21 now has met up the bullish trend in place since February.
On February 11, the FTSE 100 bounced from 5496 and then on February 24 created the higher low of 5845. The most recent swing in this series of higher lows is April low of 6060. As a short-term and long-term trend meet, the price could turn choppy as traders figure out which trend should dominate.
Eurozone Inflation failed to meet a Bloomberg news projection as inflation declined by 0.2% vs. the -0.1% expected. This may keep the ECB under pressure to keep rates low for longer. On the other hand, the Unemployment rate improved from 10.3% to 10.2%, beating estimates of a 10.3% reading, and first quarter GDP rose by 1.6% vs. the 1.4% estimated.
The FTSE 100 was little changed following the release of the Eurozone data. We note that low inflation and higher than expected economic growth tends to be viewed positively by stock market traders.
This afternoon the spotlight turns to US PCE figures and to Chicago PMI, read Ilya Spivak, Currency Strategist’s take on the PCE figures.
FTSE 100 | CFD: 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
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