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
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
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bullish
GBP/USD
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
USD/JPY
Mixed
More View more
Breaking news

US Dollar, Japanese Yen sharply higher after EU finance ministers fail to agree on joint fiscal response to Covid-19 outbreak

Real Time News
  • Because you know what you need when global trade has collapsed amid the #coronavirus outbreak? Some new trade barriers to disrupt what little activity there is. #RiskAversion #JPY #USD https://t.co/eEGqAc7UJF
  • BREAKING NEWS: #EU has introduced tariffs of up to 18.9% on stainless steel products from China, Indonesia and Taiwan. Tariffs will remain in place for 6 months. [via BBG] #tradewar
  • This looks to be why #USD and #JPY have shot higher across the board. EU finance ministers were weighing an EUR500bn "safety net" fiscal boost to offset the impact of the #coronavirus on the regional economy https://t.co/heFHfKoDJZ
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7xJq5 https://t.co/Rmbl9uFbHX
  • BREAKING NEWS: #USD sharply higher vs majors after #EU finance ministers fail to reach a deal on a joint #coronavirus response
  • 🇨🇭 CHF Unemployment Rate s.a. (MAR), Actual: 2.9% Expected: 2.6% Previous: 2.3% https://www.dailyfx.com/economic-calendar#2020-04-08
  • 🇨🇭 CHF Unemployment Rate (MAR), Actual: 2.8% Expected: 2.6% Previous: 2.5% https://www.dailyfx.com/economic-calendar#2020-04-08
  • Hey, traders 👋 do you want live AMAS with our analysts, market updates and tools to improve your trading strategy? Join us now on Instagram! 👉 https://t.co/pHGzVMI3tC https://t.co/aYVJ6Xo3do
  • Heads Up:🇨🇭 CHF Unemployment Rate s.a. (MAR) due at 05:45 GMT (15min), Actual: N/A Expected: 2.6% Previous: 2.3% https://www.dailyfx.com/economic-calendar#2020-04-08
  • Heads Up:🇨🇭 CHF Unemployment Rate (MAR) due at 05:45 GMT (15min), Actual: N/A Expected: 2.6% Previous: 2.5% https://www.dailyfx.com/economic-calendar#2020-04-08
FTSE 100: Fake-out, Breakout Sets Up Shorts

FTSE 100: Fake-out, Breakout Sets Up Shorts

2016-06-08 08:24:00
Paul Robinson, Strategist
Share:

What’s inside:

  • A question we recently answered may be in the process of being answered
  • Failed breakout, daily reversal bar to lead to lower prices
  • Range-bound market becoming likely until the EU vote

This was the question we asked on Friday, “lower high or higher low?”, and yesterday with the FTSE 100 unable to hold a breakout, the answer to our question may be, “neither”.

From yesterday’s commentary: “If the market fails to hold onto today's rally and sinks back well below 6300, then a higher level range could be developing from the one we saw dominate through much of May. A failed rally would also likely create a bearish daily reversal bar.”

Indeed, that is exactly what we saw yesterday – a bearish daily reversal bar ('pin bar'). Today, thus far we are seeing the FTSE 100 up small early on, but expect yesterday’s price action to lead to a move lower in the next few days.

There is support between 6230 and 6200, with the 6/1 swing low at 6149 as the next level of significant support. As long as the spike day high (6323) keeps a lid on the market, we expect the market to be range-bound, with weakness unfolding in the very near-term.

FTSE 100 Daily

FTSE 100: Fake-out, Breakout Sets Up Shorts

A range-bound UK stock market and currency as the next two weeks up to the EU referendum makes sense on this end as the pendulum swings from ‘stay’ to ‘leave’ within its own slight range at this time; its marginal between the two sides according to the polls, which aren’t necessarily all that reliable. No-one really knows at this juncture, and with that we are seeing that indecision in the marketplace.

Learn how to improve your ability to take your ideas from the point of concept to execution with our guide, "Traits of Successful Traders".

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES

News & Analysis at your fingertips.