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
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
Bullish
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
Bullish
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
Gold
Bearish
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.09% Gold: -0.81% Silver: -1.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fkMLmNBNWw
  • $USDJPY Daily Pivot Points: S3: 106.81 S2: 107.57 S1: 108 R1: 108.75 R2: 109.07 R3: 109.82 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @TradersTextbook: AAh, the unicorn stocks!🦄 Returns from recent unicorns since their IPO. Uber: -29% Lyft: -55% Peloton: -17% Fiverr:…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.07%, while traders in France 40 are at opposite extremes with 87.39%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/I63rBfzto7
  • $EURUSD Daily Pivot Points: S3: 1.091 S2: 1.0972 S1: 1.1005 R1: 1.1067 R2: 1.1096 R3: 1.1158 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The bearish steepening of the US Treasury yield curve – long-end rates are rising faster than short-end rates – is a sign of improving risk appetite among traders. Get your market update from @CVecchioFX here: https://t.co/iVw110HfdW https://t.co/enRFv1p4hT
  • US Equities Update (Tuesday Close): $DJI +0.88% $SPX +1.02% $NDX +1.28% $RTY +1.24% $VIX -7.28%
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.00% US 500: -0.01% Germany 30: -0.11% France 40: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/ejAzGhz2Sl
  • This is what you should expect to see in volatility. Here we have the Pound Volatility index from the CME overlaid with $GBPUSD in green. Sterling may be rising but it is still very unclear https://t.co/xZCyqNHMN0
  • UK PM Boris Johnson to address 1922 committee of Conservative backbenchers tomorrow evening. -Telegraph Reporter $GBP #Brexit
FTSE 100 Outlook – Looking to Break the 200-day, Pattern Neckline

FTSE 100 Outlook – Looking to Break the 200-day, Pattern Neckline

2019-05-31 08:15:00
Paul Robinson, Currency Strategist
Share:

FTSE 100 Technical Highlights:

  • FTSE 100 trading at 200-day, neckline of H&S pattern
  • Support until broken, but looks quite vulnerable
  • Levels to watch should the index break

For the Q2 FTSE & GBP forecasts, check out the DailyFX Trading Guides page.

FTSE 100 trading at 200-day, neckline of H&S pattern

A couple of weeks back we looked at a bearish scenario for the FTSE 100 should it turn lower from resistance – a head-and-shoulders (H&S) pattern. With the recent round of weakness since that time the index is back testing confluent support by way of the 200-day and neckline of the H&S formation.

A daily close below 7146 will have the FTSE 100 triggering the H&S and rolling downhill towards lower levels. The height of the pattern from the head down to the neckline calls for about a 380-point measured move, or a drop to ~6770.

Along this path there are support zones to watch; late-March, early-Feb brought support in the vicinity of 7088/41, below there watch 7001/6968 from January, followed by the measured move of 6770. The measured move target (MMT) is just an approximation without any actual levels backing it, leaving a break below the January swing level open for potential to take the FTSE to a swing low from Jan at 6734.

Tactically speaking, today could be an important day as confluent support and a bearish price pattern could trigger by day’s end. If this is the case, then shorts should gain the upper hand in the sessions ahead. If support holds it will be a prudent move to lay low on shorts, while the chart will still look in need of mending before longs become appealing.

FTSE 100 Daily Chart (at 200-day, neckline)

FTSE 100 Outlook – Looking to Break the 200-day, Pattern Neckline

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

You can join me every Wednesday 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.