Thursday, January 10, 2019

FTSE100 - 10 Jan 2019


Fundamental Highlights

The FTSE moved 0.66% higher as the 3-day trade negotiations between the US and China distracted markets from Brexit uncertainties and dread as the voting day on the exit deal approaches. BOE Governor Carney reassures that the monetary policy committee is well prepared for any of Britain’s subsequent economic paths. Traders can expect the internationally exposed index to be affected by Fed Powell’s statement today and ECB’s minutes of meeting on monetary policy.

Technical Analysis

The daily RSI reading on the FTSE remains above 50 and maintains the bullish bias as the price action tested the resistance zone of 6910-6940 before moving back down. The index must move past the 6940 level to confirm a continuation of the upside move. Meanwhile, the corresponding RSI trend line breaks and puts attention on a support zone between 6845 and the 20-period MA indicative of selling pressure.

Support: 6800 / 6750
Resistance: 6940 / 7000

Chart (H4)