FTSE 100 picks up after a 2 10 decline

Falling by more than -2% the FTSE 100 is trading higher today. The index fell to a low of 5858 almost reaching a key support level at the 5888 – 5832 zone. Interestingly the price action suggests that a short term “Key Reversal” may be in place after breaking below last week’s pivot low. Currently the index is heading higher but may find resistance at 5939 and further up at 5964. Meanwhile the US Dow Jones Index managed to retrieve some of its losses after falling to a low of 12903. The resistance for the upside is at 12314 – 12374 which if cleared may suggest that yesterday’s decline was a standard pullback.

COMMODITIES
Gold prices edged higher and the June contracted marked a new high at $1,498 indicating that the commodity is likely to be on target for $1,514 as the key objective. As long as Gold can stay above $1,453 the target should not be too much of a problem. The weekly trend clearly remains bullish. Nymex Crude Oil for May closed lower at $107.12 and is setting the stage for an ABCD decline where Oil may fall lower to find support at $103.30 – $100.53 unless it can climb back above $110.10 to head higher for the $118 level.

CURRENCIES
Sterling faced a volatile session yesterday after falling sharply from 1.6328 to a low of 1.6166 and today may see the currency retrace towards 1.6295 as a pivot level and if cleared may aim for the 1.6328 high. If the US session sees Dollar strength then Sterling may retreat back down to 1.6272 – 1.6248. EUR/USD has started today on a positive note but is likely to see a struggle at the 1.4288 and 1.4329 level. The bearish move observed over the last session has clearly set the stage for more potential declines. Unless the currency clears the above resistance levels the opportunity for a lower low beyond 1.4157 may be on the cards.