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.

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
EUR/USD
Bearish
Oil - US Crude
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
Wall Street
Mixed
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
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • another nasty week in Cable $GBPUSD but most of that sell-off was Monday and Tuesday, after which support came into play. 2712 has now helped to hold the lows for three (going on four) days - even as $USD rally has continued https://t.co/kKURzmx61S https://t.co/eHZZ9rZC9X
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: -0.32% Silver: -0.93% Oil - US Crude: -1.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fdLE2SYbFA
  • While risks may be starting to skew to the upside in Brexit negotiations, GBP/USD continues to trade in choppy fashion, with pullbacks finding support at 1.2720-30. Get your $GBPUSD market update from @JMcQueenFX here:https://t.co/TOrUJKapR1 https://t.co/txDbUikOFZ
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.21% US 500: -0.30% Wall Street: -0.50% France 40: -1.37% Germany 30: -1.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/eOrhf8Ozhy
  • Heads Up:🇺🇸 Fed Williams Speech due at 13:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-25
  • 🇺🇸 Durable Goods Orders Ex Transp MoM (AUG) Actual: 0.4% Expected: 1.2% Previous: 2.4% https://www.dailyfx.com/economic-calendar#2020-09-25
  • 🇺🇸 Durable Goods Orders MoM (AUG) Actual: 0.4% Expected: 1.5% Previous: 11.2% https://www.dailyfx.com/economic-calendar#2020-09-25
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.29%, while traders in EUR/GBP are at opposite extremes with 64.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Pr6fmzDXyZ
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.07% 🇬🇧GBP: -0.07% 🇯🇵JPY: -0.08% 🇨🇭CHF: -0.14% 🇦🇺AUD: -0.22% 🇪🇺EUR: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vRMbDk8nMT
  • Heads Up:🇺🇸 Durable Goods Orders Ex Transp MoM (AUG) due at 12:30 GMT (15min) Expected: 1.2% Previous: 2.4% https://www.dailyfx.com/economic-calendar#2020-09-25
FTSE 100: Treading Water Following Breakout

FTSE 100: Treading Water Following Breakout

2016-07-08 08:32:00
Paul Robinson, Strategist
Share:

What’s inside:

  • The FTSE 100 takes back more than ‘Brexit’ losses, breaks above resistance
  • Large disparity in performance between the multi-national 100 index and the domestically focused mid-cap 250
  • As long as support holds, bias is higher, but not a market to chase

The last time we discussed the FTSE 100 we were noting a major area of resistance just on the horizon. In the last commentary regarding the UK index, we made this notation on the chart, “Not interested in ‘blind’ sales here, but no doubt we are upon a reaction zone and want to pay attention to how the market responds.” The market’s response? The FTSE 100 went into ‘frontal assault’ mode, easily clearing through resistance levels; and thus giving zero reason to establish a short. This is why blindly shorting levels without first seeing a turn in momentum can be dangerous.

The day it broke on through to the other side was also the day the BoE’s Carney hinted towards a summer stimulus package (rate cuts, etc.) in the face of what the bank unquestionably believes will be a difficult period ahead for the British economy. The pound got slammed, stocks rallied on the commentary.

Especially the FTSE 100, where there are numerous large multi-national companies with revenue streams outside of the UK. Easy monetary policy means a weaker currency and a boost to corporate profits.

On the other hand, the FTSE 250, a mid-cap index, is more domestically focused, and thus didn’t receive the same kind of lift as the 100. The chart of this index is much more in line with other major European indices – the DAX and CAC – which are closer to making a post-Brexit low than they are to making a new high. The FTSE 250 is over 8% lower from its June 23 close, while the 100 is over 3% higher.

Getting back to the technical landscape for the FTSE 100: It has clearly breached major resistance, and thus far held on a retest, making new support out of old resistance. The consolidation following the large rise and break above resistance is encouraging. As long as the 6400s continue to hold, then the bias is upward. But keep in mind, the FTSE is a shifty index to trade and best traded from a mean-reversion trader’s perspective. Any purchases from here will likely be best served on a dip. Chasing breakouts is not likely to yield good results over the long-run. In the event we see the UK index sink back below 6400, then so will our bias on any failed attempts to rally following the breakdown.

FTSE (UK100) Daily

FTSE 100: Treading Water Following Breakout

Start improving your trading skills today with one of our trading guides aimed at traders of all experience levels.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX, and/or email him directly at instructor@dailyfx.com with any questions or comments.

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

DISCLOSURES