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
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/K081dvpFZM
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.00% 🇯🇵JPY: -0.00% 🇦🇺AUD: -0.13% 🇬🇧GBP: -0.20% 🇨🇭CHF: -0.31% 🇪🇺EUR: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/AHoBwsZKtF
  • BFM TV reports blast heard in Paris was a plane breaking sound barrier
  • Reports of a Major Blast Heard in Paris
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.23% France 40: -0.48% Germany 30: -0.49% US 500: -0.51% Wall Street: -0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/zOxD5N3PjC
  • Don't fight the SNB https://t.co/30oYur67XN
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/Ahj7m9Q9lH
  • 🇮🇹 Inflation Rate YoY Prel (SEP) Actual: -0.5% Expected: -0.4% Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-09-30
  • 🇮🇳 Current Account (Q2) Actual: $19.8B Previous: $0.6B https://www.dailyfx.com/economic-calendar#2020-09-30
  • Heads Up:🇮🇳 Current Account (Q2) due at 09:00 GMT (15min) Actual: $19.8B Previous: $0.6B https://www.dailyfx.com/economic-calendar#2020-09-30
FTSE 100 Dropping into Trend Support, but Will It Hold?

FTSE 100 Dropping into Trend Support, but Will It Hold?

2017-03-27 08:29:00
Paul Robinson, Strategist
Share:

What’s inside:

  • FTSE 100 intermediate-term breaks channel with broad risk aversion
  • Testing trend support extending up from the June lows
  • Other key support resistance levels outlined

Looking for trading ideas? See our Trading Guides.

When we last discussed the posturing of the FTSE 100 on Thursday, we had this to say about the index and markets in general: “a period of risk aversion looks to be upon us. And while the FTSE doesn’t present the clearest picture, the bias in general for global equities is one of caution to bearishness.” This morning, at the time of this writing, the footsie is getting cracked by 1% as risk aversion sweeps across markets; overnight the Nikkei took a 1.44% hit, the DAX is down about 90 bps or so, and the S&P 500 futures in the U.S. are down by close to 1%.

Today’s selling has the FTSE well below the lower parallel of the channel off the 2/2 swing low. In fact, it’s testing an important trend-line(s) off the June/’Brexit’ lows. We’ve drawn them in a couple of ways in light of the ‘tail-day’ event on the day of the vote. Whether you draw the line connecting closing prints or from low-to-low, the two arrive in the same vicinity. A break much lower from current prices will put the market below both, in addition to carving out a lower low from the 3/9 swing low. A break below the trend-line and the creation of a lower low certainly undermines what has been a fairly firm intermediate-term trend higher.

Looking below the June trend-lines & 3/9 low, the 2/24 low at 7192 and then the 2/2 low at 7093 will be targeted. But only if the footsie can close below support in the area; support is support until it isn’t. It will take some work for the picture to turn bullish.

FTSE 100: Daily

FTSE 100 Dropping into Trend Support, but Will It Hold?

Created with TradingView

See the Webinar Calendar for a schedule of upcoming live events with DailyFX analysts.

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

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

DISCLOSURES