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
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Weakness in equity markets continued last week as losses built and technical patterns hint further bearishness might be ahead. Get your #equities update from @PeterHanksFX here: https://t.co/GGVrB3r7if https://t.co/HPHUC8EG3o
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/q80wSAoxXP
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/SsUguHB39W
  • 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/aD1ZWhTWZp
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here: https://t.co/719LgjFmYG https://t.co/SSoqjONUzA
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:https://t.co/ed4QR7QQOn https://t.co/gDWYNtm2UY
FTSE 100 – Confluence of Support Keeps Bears in Hibernation

FTSE 100 – Confluence of Support Keeps Bears in Hibernation

2017-05-24 08:31:00
Paul Robinson, Strategist
Share:

What’s inside:

  • FTSE 100 maintaining above big area of support after thorough test last week
  • Might not see a big rally, but neutral to bullish bias warranted above support
  • Top-side trend-line, record high are the only things standing in the market’s way

Find out what’s driving Sterling and the FTSE 100 in our market forecasts.

Monday’s update was titled, “Trading Between Key Lines of Influence”. With only a couple of trading sessions and price action having not moved much since, the FTSE is still on a mission of price discovery beyond noted lines of influence. Monday and Tuesday saw the market move up towards recent record highs and the top-side trend-line extending over peaks in January and March, but found a few sellers on approach.

If weakness sets in, the footsie won’t have far to drop before it should find sponsorship on the trend-line rising up from the April low; but even more important is the 2013 trend-line which was confirmed as support last week on the quick-hit in response to US politics souring. The long-term trend-line proved itself a problem from January through April before the FTSE finally broke on through. But it wasn’t just the breakthrough which captured our attention, it was the successful retest on a sharp drop which was also viewed as an important event. There was confluence with prior peaks as well, but all-in-all old resistance was proven to be a solid form of new support.

With that in mind, as long as the market can stay above this critical line of influence, then the market remains healthy from where we sit. Looking higher, the top-side trend-line (Jan/Mar) and record high at 7533 will be the hurdles to clear for higher prices to result.

Heads up: Later today the minutes from the earlier-month FOMC meeting will be released, and while it likely won’t cause any chaos, we can’t dismiss its potential impact on the market. Last month, the S&P 500 dove sharply and in response we saw Asia and Europe gap lower the day after.

FTSE 100: Daily

FTSE 100 – Confluence of Support Keeps Bears in Hibernation

Paul conducts webinars every week from Tuesday-Friday. See the Webinar Calendar for details, and the full line-up of all upcoming live events.

---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