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FTSE: 7499 And 7544 Resistance

Published 14/12/2017, 09:14
Updated 14/05/2017, 11:45

The FTSE 100 couldn't really push past the 7500 level yesterday in what was another flat session, rising from just 7490 to a session high of 7510 before dropping back in the evening as the Brexit bill failed in parliament in a blow for the government. May is heading to Brussels today with a further weakened position.

As expected, the Fed raised interest rates as well as their economic growth forecast for the new year. They stuck with a projection for three hikes in 2018, also widely anticipated. Policy makers confirmed that monthly roll-offs from the central bank’s balance sheet would step up, as scheduled, to $20 billion from $10 billion beginning in January.

We have the ECB and BoE with further monetary policy announcements today, both expected to remain the same.

We have had a small pull back from the 7510 level as expected for today and tomorrow, and are currently sitting on the 7480 support to start with today. Once again it's going to be eyes on the ECB and BoE today (doubt very much that the BoE will be changing anything as they only put rates up last month).

Initially we have support at this 7480 level but below this then a trip down towards the 7420 level makes sense before the Santa Rally possibly kicks in next week. Will be quite low volume next week I expect too. There is support half way between these levels at the 7446 to 7452 level so we may only get as far as this as a drop to 7420 looks just a bit too perfectly predictable on the daily chart.

The bulls will be keen to push past yesterday's high at 7510 though, as that keeps the rise to 7600 on the cards. Can they push past that level though prior to Christmas?! We have R1 at 7514 to start with, and with a bearish looking 30min chart we may well see a dip initially today. If the bulls can gain control though then a rise towards the fib pivot at 7544 is possible today. With lots of high impact news due today, we may see a bit more caution initially. We also head towards option expiry tomorrow, so I am still expecting a dip and rise over the next 24 hours.

Gold finally moved up off its lows yesterday as crypto mania subdued a little bit with Bitcoin staying around the 16k level.

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