Two trades to watch: FTSE, Gold

FTSE hovers around 16 month high as PM Boris Johnson is expected to delay the final re-opening of the UK economy. Gold has fallen below a key trendline support.

Brexit 1

FTSE rises despite re-opening set to be delayed 

FTSE along with other European bourses point to a stronger start as investors look ahead to an expected dovish Fed. 

The UK index is advancing despite PM Boris Johnson looking set to push back the final step of reopening the UK economy for 4 weeks. An announcement will be made later. 

Concerns are growing over the rapid rise of the delta variant of covid in the UK which is reportedly 60% more transmissible. 

Pubs, clubs and other hospitality venues are expected to be told they need to wait another 4 weeks to fully reopen. 

The FTSE could find some support from oil majors as oil prices continue to rise to fresh 2 year highs 

Where next for the FTSE? 

The FTSE trades above its descending trendline dating back to early November. It trades above its 50 & 100 sma in an established bullish trend. 

There appears to be a bullish crossover forming on the MACD which could keep buyers hopeful. 

The FTSE briefly touched its 16 month high at 7165 earlier. A move beyond here is required to target 7200 round number and 7230 the low from January 31st 2020 pre-pandemic. 

It would take a move below 7050 to negate the near term bullish trend. This could open the door to support at 7010 the 50 sma and ascending trendline support. 

Learn more about the FTSE


Gold falls below key support 

Gold trades around weekly lows as the US Dollar remains firm. 

The US Dollar found support on Friday following upbeat US consumer confidence, which rose to 86.4 in June, up from 82.9 in May. 

Pre-Fed jitters are set to dominate this week as investors continue to weigh up whether the Fed will stick with the dovish tone or move towards talking about talking about tapering. 

Where next for Gold prices? 

Gold has fallen below its ascending trendline dating back to late March. A daily close below this level could validate the bearish reversal from $1900 at the start of the month.  

The bearish MACD suggests there could be more downside to come. Sellers would need to break below support at $1860 in order to look towards support at $1830, the 50 sma on the daily chart and also the trend line support dating back to August last year. 

On the flip side, any recovery would need to retake the trendline support turned resistance at $1879 in order to head back towards $1900. 

 What is MACD?

More from FTSE 100

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.