Bottom line: FTSE long term structure remains bearish against 7724 resistance. Over the short term though, bears have managed to carve a lower high around 6350 levels which might keep intraday rallies in check. Bears might continue to remain in control until 6500 is intact.

 Fundamental Outlook:

EURUSD had dropped by -1.77% over the last week closing around 1.1630 mark. The exchange rate has been under pressure since September 01, 2020. As risk assets declined, the safe haven US Dollar has managed to gin across major currencies. The exchange rate might remain under pressure with US Presidential debate, NFP event risks lined up this week.

FTSE had declined by -1.94% over the last week, as risk aversion continued. Dow Jones and SPX500 dropped around -2.0% and 0.97% respectively and US Dollar Index rose by +1.7% in the last week. Investor sentiment remains fragile over the additions US stimulus package and risk assets might continue its selloff over the next several weeks.

GBPUSD remained under pressure over the last week and managed to close at 1.2745, down -1.31%. The exchange rate might continue to be driven by Brexit developments as October 15, 2020 deadline approaches. An agreement must be reached by the above date to ensure smooth transition by December 31, 2020.

Technical Analysis:

FTSE continued to remain in control of bears as it dropped through 5775 lows over the last week. The indice has managed to pullback since then, and is trading close to 5920 levels as we prepare to publish. Short term rallies might be underway but is expected to be well capped below 6350 and 6500 mark.

FTSE has continued to drop from sub 7700 highs through 4750 lows in Marsh 2020. The entire drop was an impulse wave, which has been retraced by a corrective rally between 4750 and 6500 respectively. Since then, bears have managed to take control back and dropped through 5775 mark.

Also note that FTSE has reversed from just below the fibonacci 0.618 retracement of the impulse drop, which is seen around 6590 levels. It seems to be unlikely at the moment but a push through 6590 would face strong resistance going forward.

Most traders might be willing to hold short positions initiated around 6400/50 levels and look to add further around 6100/50 level. Protective stops might be place above 6500 resistance and projected targets below 4700 respectively.

Prepared by

Harsh Japee, Technical Analyst.

FTSE Chart

Disclaimer:

This market commentary and analysis has been prepared for AT Global Markets UK Ltd (ATFX UK) by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such.

You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

 Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients.

The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。