FTSE fall after CPI data but near-term action remains within 7326/74 range

Slobodan Drvenica Windsor Brokers

FTSE100

FTSE dipped to the session low at 7334 on upbeat UK CPI data that boosted pound, falling from session high at 7367, where hourly cloud base capped recovery attempts. The index is holding within 7326/7374 range for the third straight day, after pullback from fresh record high at 7444 found footstep at 7326 pivot (Fibo 61.8% of 7254/7444 upleg, reinforced by rising 20SMA). Near-term studies are in neutral mode, as the price is in range-trading, however, overall picture remains bullishly aligned. While 7326 support holds, scope exists for fresh attempts higher. Break above range top and filling last week's gap are needed to generate stronger bullish signal and re-focus 0.7444 top. Otherwise, increased downside risk could be expected on violation and close below 7326 Fibo support that would expose next pivot at 7309 (sideways-moving daily Kijun-sen) and risk return to 7254 (09 Mar trough) on stronger bearish acceleration.

Res: 7367; 7374; 7399; 7424

Sup: 7334; 7326; 7309; 7298

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.