Markets flat after recent gains
City Index April 7, 2011 2:23 PM
<p>After recent gains the markets have opened the day in a relatively flat mood. The FTSE 100 is trading at 6042 which is within a […]</p>
After recent gains the markets have opened the day in a relatively flat mood. The FTSE 100 is trading at 6042 which is within a resistance zone of 6050-6117. The possibility of a reserved move higher cannot be ruled out but a short term pivot low at 6030 is suggesting that a pullback down to the 6015-5990 level is likely if we see weakness set in later in the morning session.
US Futures are flat at 12,360 and after seeing the Dow close at 12,426, this leaves the index just shy of a +1% move before it hits a major resistance target of 12,545. Today the Dow will need to sustain support at 12,395 otherwise 12,285 may be a downside target.
Crude oil also is trading flat at the $108.65 mark. The last three sessions have created a narrow range environment which simply shows the commodity is in a consolidation state. However there is now a divergence setting up between technical indicators and the recent price action. It could be that the upside may be limited to $111-$115 before a correction takes oil down towards the $100 level.
EUR/USD has come off from the 1.4349 high and the hourly chart is now starting to show signs of weakness which could see the currency trade down towards 1.4250-1.4193 unless the high of 1.4313 is cleared. EUR/CHF has also been weak from the overnight session and seems to be hovering at the 1.3091 support level. Upside resistance at 1.3125-1.3145 may prevent the currency from seeing further short term bullish plays after yesterday afternoon’s sharp rally from the 1.3067 low. GBP/USD bounced from 1.6263 and is likely to see a test of 1.6340-1.6363 before the afternoon session kicks in.