Two trades to watch: EUR/GBP, FTSE
Fiona Cincotta March 18, 2021 7:52 AM
EUR/GBP to break lower post BoE? Can FTSE finally break above 6800/10?
EUR/GBP with BoE in focus
Christine Lagarde is also speak later today.
Can the FTSE finally break 6800/10?
The Fed kept rates unchanged and the dot plot was more dovish than expected with no rate rises expected through the end of 2024.
S&P500 & Dow Jones surged to record high, with the upbeat mood transferring over to Europe.
All eyes to BoE, a stronger Pound could limit FTSE gains
Where next for the FTSE?
The FTSE has been trending higher since later February. It trades above its 50 sma on the 4 hour chart and above its 3 week ascending trendline.
However, the rally is losing momentum and the index has failed on several attempts to break through strong resistance at 6800/10.
A break above this level could see the FTSE aim for 6910 before heading up towards 6960.
On the flip side a break below 6775, a level being tested at the moment could see a decline to 6750 the 50 sma before 6700 round number. A break below here could see the sellers gain momentum.
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