- The underlying trend is bullish above last week’s low of 6002. On a break to this low the short-term trend may turn bearish.
- University of Michigan Confidence report is today’s main data event.
The FTSE 100 (FXCM: UK100) is trading sideways since the start of the month, but has an underlying bullish trend since mid-February. This underlying bullish trend may ensure that price eventually breaks higher.
The next resistance level inline and likewise potential target for bullish traders, is the March 4 high of 6221. The March 4 high might be reached as long as last week’s low of 6002 is being respected.
On a breach to the March 4 high, price might target the December 29 high of 6322, followed by the December 3 high of 6449.
When does the trend turn bearish?
For the trend to turn bearish, last week’s low of 6002 would need to give way. In this scenario the February 24 low of 5839 is the next support level and potential target for bearish traders, followed by the January 20 low of 5598.
Potential triggers of volatility
The University of Michigan Confidence report is on deck today and expected to rise to 92.2 from 91.7 in February.
The Fed’s Dudley and Rosengren are set to speak. The day concludes with the Baker Hughes U.S. Rig Count.
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For the estimates and more economic indicators on tap today, see our economic calendar.
FTSE 100 | FXCM: UK100
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
— Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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