- The FTSE 100 has fallen rather significantly.
- We are currently hanging around the 8200 level, which is an area that has been important multiple times.
- If we break down below there, the market then could go down to the 8100 level, which of course is an area that’s been important multiple times, and now is gaining even more importance, as the 200 Day EMA is racing toward that area.
When you look at the chart, it’s easy to see that we have been going sideways for a while, and therefore think you have to look at the chart through the prism of short-term back-and-forth trading, and I do think the range bound traders will be very interested in this market. After all, we have seen a lot of volatility, and therefore it does make a certain amount of sense that we would see the market continue to attract a lot of buyers on this plunge, but it’s also worth noting that the 8425 level above is significant resistance. Furthermore, we also have the 50 Day EMA slicing through the middle of this range, near the 8250 level, an area that has been important on short term charts as well.
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Global equity markets continue to move on the idea of loose monetary policy, and it’s probably worth noting that the Bank of England is a little bit different than many of the other central banks as it has been a bit more stubborn when it comes to the idea of cutting rates, and therefore it makes a certain amount of sense that the FTSE 100 might struggle to continue to the upside, but I also recognize that the market participants will continue to look at the market through the prism of whether or not we are finding value on these dips, and perhaps more importantly, whether or not we can see a major break out eventually. Keep in mind that the FTSE 100 will continue to move right along with other global equity markets as we have seen during the Tuesday session.
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