Monday, July 8, 2019

FTSE100 - 08 July 2019


Fundamental Highlights

The FTSE traded 0.66% lower on Friday as the highly anticipated US Non-farm payroll report reduced markets’ expectations for a Fed rate cut. The data showed strong job growth in the US and helped boost the dollar and weighed on the sterling. In the UK, the economic outlook remains bleak following dismal PMI figures last week and persisting uncertainty on the Brexit front. Today there are no major economic releases out of the UK and US and the FTSE will rely on news-driven sentiment to influence price action whilst possibly finding support from a weaker pound

Technical Analysis

The FTSE lost 50 points and broke below the support at 7570 to end at 7553 on Friday. The price will look to find support at 7480 with a break below the 7525 level coinciding with the 20-period MA. Should price find support at 7525, we should see price bounce back higher with a move above 7570 required to take out the resistance at 7600 and re-test the high at 7644.

Support: 7525/7480
Resistance: 7570/7600

Chart (H4)