Bottom line: FTSE long term structure continues to be bearish against 7724 resistance. The indice had carved a lower high at 6500 levels on June 08, 2020. Bears have managed to hold below that mark as they prepare to break below 6000 mark.

 Fundamental Outlook:

EURUSD raised through fresh highs around 1.1725 this morning ahead of the FOMC and Q2 GDP to be out this week. The US Dollar has faced heavy sell off against major currencies including the Japanese Yen. The EURUSD exchange rate might get further boost if the Euro Zone Q2 GDP prints better.

FTSE had dropped over -3.05 on Friday, closing around 6117 levels. The indice followed Global Equity Markets lower as risk sentiment turned negative. It might just be the beginning of a much larger selloff with COVID-19 infections still on the rise and US-China relation under stress.

GBPUSD exchange rate also increased marginally and touched 1.2850 today. The currency might come under pressure as it would be taking cues from a NO Brexit deal for now. Fisheries control remain a major hurdle, as negotiators called off talks at least for now.

Technical Analysis:

FTSE has reversed sharply from 6300/20 highs as expected, holding below the critical 6500 mark (June 08, high). Bears seem to be back in control as they are inclined to push below 6000 levels in the short term. The drop is expected to accelerate thereafter.

FTSE had earlier dropped from around 7724 through 4750 levels between February-Mach 2020. The entire drop was retraced close to the fibonacci 0.618 levels around 6500 mark. The indice is expected to hold below that mark and proceed lower as bears remain in control.

Most traders might want to remain short with protective stops above 6800 levels (safer side) for now. The projected targets are below 4750 over the next few months and only a consistent break above 6500 would change the structure.

Prepared by

Harsh Japee, Technical Analyst.

FTSE Chart

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。