Two trades to watch: FTSE, US Dollar Index
Fiona Cincotta February 23, 2021 7:00 PM
FTSE gains on commodity rally, HSBC results. US Dollar Index searches for direction ahead of Fed Chair Jerome Powell's testimony.
Where next for the FTSE?
The FTSE is rebounding after falling lower in the previous session. It trades +0.3% at the time of writing The price picked up off the ascending trendline support on Monday. However, the RSI is neutral at 50 and the 200 & 50 sma are flat indicating a neutral bias.
The price is currently testing the 50 & 200 sma on the 4 hour chart at 6640.
A break above this level could bring resistance at 6750 into play high 18th February ahead of February’s high at 6800.
Should the price fail to break above the 50 & 200 sma the price could fall back to 6590 the ascending trendline support before testing 6545 the low from 22nd Feb.
US Dollar looks for direction ahead of Fed Jerome Powell’s testimony
Where next for the US Dollar Index?
The US Dollar is attempting to recover from a pullback overnight to a low of 89.94 in the Asian session.
It trades below its 50 & 200 sma, the 50 sma crossed below the 200 sma in a bearish signal and the RSI is also supportive of further losses until it reaches oversold territory.
Today’s low of 89.94 and January 13th low of 89.92 offers immediate support and could prevent further losses in the DXY. Beyond here 89.70 low 8th January could also offer support. A move through here to 89.20 the yearly low can’t be ruled out.
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.