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
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • #Forex Forecast via @DailyFX: US Dollar Technical Outlook on $DXY, $AUDUSD, $USDCAD, $USDJPY & $EURUSD Full Analysis ⬇️ https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/11/17/usd-price-us-dollar-chart-forecast-dxy-audusd-usdcad-usdjpy-eurusd.html
  • Further escalation in Hong Kong will likely bode poorly for risk appetite https://t.co/0NjUd3ahBu
  • How should you trade around event risks and what steps can you take to improve your trading psychology? Find out from @JoelKruger, a trading consultant and mentor. Only on Global Markets Decoded. Missed the episode? Read up here:https://t.co/JWIGJk4vKa https://t.co/WB39x4GP99
  • Poll - Does your personality match your #tradingstyle? Vote and find out from @WVenketas here: https://t.co/vREsUIWSJd https://t.co/Ft0ExAmMpq
  • #Dow Jones hits record high, however, central bank liquidity prompts volatility implosion. #FTSE 100 among underperformers with focus remaining on politics. Get your #equities market update from @JMcQueenFX here: https://t.co/EOFleGSeBp https://t.co/ecAyfSUeAM
  • RT @C_Barraud: 🇪🇺 #ECB’s Muller Says More Assets Could Join Stimulus List in Slump - Bloomberg https://t.co/roGEgu0VTQ
  • With increasing volatility in weather patterns, how might storms, hurricanes and floods rattle the supply chain for petroleum-based products and impact crude oil prices? Find out from @JStanleyFX here:https://t.co/O4dgBl47fq https://t.co/OQYqZAYt9S
  • Currency Strategist,@PaulRobinsonFX is a Swing trader. What is your #tradingstyle? Take the quiz and let us know: https://t.co/LPBOcS0Vtd https://t.co/WzRYeqRhUL
  • Despite what your #tradingstyle is, you should be keeping a trading journal. How can you start keeping a trading journal? Find out: https://t.co/0akgWbyJEw https://t.co/4ehMlN4zv1
  • The Euro’s struggle to move higher against a range of currencies continues and without further support this is likely to continue into the year-end. Get your $EURUSD market update from @nickcawley1 here: https://t.co/myZ7R0eGUb https://t.co/12WJd53Cx4
FTSE Technical Outlook – The Struggle Continues Near Multi-Month Lows

FTSE Technical Outlook – The Struggle Continues Near Multi-Month Lows

2018-08-30 08:36:00
Paul Robinson, Currency Strategist
Share:

FTSE Technical Highlights:

  • FTSE generally weak sitting near multi-month lows
  • Solid near-term support just under 7500
  • Long-term chart pattern revisited

To see what fundamental drivers and intermediate-term technical factors are driving the FTSE & British Pound, check out the DailyFX Q3 Trading Forecasts.

FTSE generally weak sitting near multi-month lows

The FTSE continues to demonstrate relative weakness among major global indices, lately performing a bit worse than its Euro-zone counterparts (DAX/CAC) and considerably worse than the U.S., which is running to new heights (S&P 500, Nasdaq 100).

Indeed, there is glaring divergence right now between several major global equity markets and the U.S. Turning to Asia, the Nikkei is sitting a good distance from it’s January highs, too, struggling to get to its best levels since May.

What does this all mean for the FTSE? The relative weakness suggests that if the struggles continue, when (if) risk appetite weakens in the world’s largest stock market, we could see the footsie trade sharply lower. We saw something like this happen from January to March.

Long-term Chart Pattern Revisited

This brings us to the long-term pattern we discussed a couple of weeks back. The Reverse Symmetrical Triangle, or ‘RST’, that has been developing since June of last year is starting to point to a broad reversal. Looking at the weekly, the initial pullback in May/June led to a failed rally into this month, which is now rolling over towards another lower low.

The pullback, failed rally scenario is typically the sign of an ‘RST’ becoming a reversal pattern and not one which leads to a continuation. We have yet to see a close below the June weekly low of 7508, but if we do (and recent 7477 low) it will further along the notion that the FTSE is on the verge of declining much more swiftly soon.

In the immediate future there is the low from the week before last and 200-day MA, if a decline below 7477 develops look for more immediate selling. There is a lower parallel under 7400 which may provide near-term support, though, and with trading conditions generally choppy heading into the end of summer, playing momentum in either direction isn’t a prudent approach. Entries will likely be best kept to counter-trend moves…

Check out this guide for 4 ideas on how to Build Confidence in Trading.

FTSE Weekly Chart (RST Pattern)

FTSE weekly chart, RTS pattern

FTSE Daily Chart (Support at feet)

FTSE daily chart, support at feet

You can join me every Tuesday at 9 GMT for live analysis on equity indices and commodities, and for the remaining roster of live events, check out the webinar calendar.

Tools for Forex & CFD Traders

Whether you are a beginning or experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---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.