Two trades to watch: FTSE, US Dollar Index
Fiona Cincotta February 23, 2021 8:00 AM
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.
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