News out of the G20 was that Trump and May were looking ahead to a “very good” trade deal between the US and UK, which should help with a usual bull Monday today. Futures are up already, and even North Korea getting shirty about a live fire drill with USA and South Korea on Saturday hasn’t derailed a strong Asia session. If anything, it keeps North Korea in its box.
UK press attention has been placed on reports suggesting that PM May will seek opposition support in pushing through Brexit legislation
Chinese producer prices data today showed robust demand. US jobs data on Friday showed U.S. employers added the most jobs in four months in June, though wage increases were sluggish.
FTSE: We have pretty strong resistance at the 7386 to 7405 level so we might see any initial rise tempered there and a drop down to the 2 hour support level at 7350. There are actually a few supports on the 30min at 7350 as well so if the bulls are going to build on this current upwards momentum this is a good spot to reload some longs. However, the bounce does look fragile again and it will be interesting to see if the bulls can push above the 7405 level if tested. 7385 was resistance all last week and we repeatedly dropped off this 7385 level so the bulls will want to be quick out the blocks to push above it.
The 2 hour chart is bullish again with support at 7350 from the moving average. The Bianca channels are bearish, with resistance at the 7385 level.
If the bulls were to push above the 7405 level then 7470 looks possible, though probably later this week – we have Raff channel resistance at 7411 and 7430 to contend with first.
I am sort of expecting that usual pattern yet again of bull Monday, bear Tuesday, though it might be a bit lack lustre today. Fully expecting a drop to 7350 and see what it does there.
