Monday, February 8, 2016 8:54 AM EDT
The FTSE 100 (FXCM: UK100) has now breached its January 26 low of 5767 and is expected to drift to the January 21 low of 5660 over the coming days ahead. Traders not short will most likely use a pullback to the regions of 5800 before turning bearish, as the risk/reward ratio is favourable here.
The overall trend will be bearish below the February 4 high at 5949, which is also the level highlighted last week as a sell zone. Traders need to lift price above this high for bullish positions to be considered.
At this stage, it’s hard to pinpoint exactly what is driving price, yet it may be last week’s strong U.S. labor market report, which suggests that a Fed rate hike is still in play. The unemployment rate dropped to 4.9% from 5% and wage growth increased by 2.5% YoY, solidly beating the 2.2% expected, with the manufacturing sector adding 29k jobs vs. the -2k expected. The latter reading come as a strong surprise given the softness of the manufacturing sector.
There is no more data on tap today and trading should be dominated by technical trading.
FTSE 100 | FXCM: UK100
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
DailyFX, the free news and research website of leading forex and CFD broker ...
more
DailyFX, the free news and research website of leading forex and CFD broker FXCM, delivers up-to-date analysis of the fundamental and technical influences driving the currency and commodity markets. With nine internationally-based analysts publishing over 30 articles and producing 5 video news updates daily, DailyFX offers in-depth coverage of price action, predictions of likely market moves, and exhaustive interpretations of salient economic and political developments. DailyFX is also home to one of the most powerful economic calendars available on the web, complete with advanced sorting capabilities, detailed descriptions of upcoming events on the economic docket, and projections of how economic report data will impact the markets. Combined with the free charts and live rate updates featured on DailyFX, the DailyFX economic calendar is an invaluable resource for traders who heavily rely on the news for their trading strategies. Additionally, DailyFX serves as a portal to one the most vibrant online discussion forums in the forex trading community. Avoiding market noise and the irrelevant personal commentary that plague many forex blogs and forums, the DailyFX Forum has established a reputation as being a place where real traders go to talk about serious trading.
Any opinions, news, research, analyses, prices, or other information contained on dailyfx.com are provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
DISCLOSURES
less
How did you like this article? Let us know so we can better customize your reading experience.