Two trades to watch: EUR/USD, FTSE

EUR/USD in focus ahead of ECB minutes and US retail sales. FTSE points higher amid an improved mood in the market after US Fed officials soothe inflation concerns.

Charts (4)

EUR/USD in focus ahead of ECB minutes and US retail sales

EUR/USD is edging higher after bouncing off a weekly low in the previous session 

The Fed’s insistence that multiple months of high inflation data would be needed to consider tightening policy despite strong CPI & PPI data has helped calm monetary policy tightening expectations. 

ECB policy makers are less concerned about inflation but are now expecting stronger economic growth in 2021 -22 as per the latest forecasts. 

Looking ahead the release of ECB monetary policy meeting minutes will be in focus in addition to US retail sales & Michigan consumer sentiment index. 

Learn more about ECB 

Where next for EUR/USD? 

EUR/USD found support at around 1.2055 the 2 month ascending trendline which is keeping the buyers optimistic of a move towards 1.2175 the monthly high. A break above here could see 1.2240 come into play the late February high. 

On the flip side a break below 1.2055 could see the 100 day ma tested at 1.2030 before bringing the key psychological level of 1.20 into focus. 

Learn more about trading forex 

 

FTSE points higher amid improved mood in the market

European bourses are pointing to a stronger start following a positive close on Wall Street after US Federal Reserve officials soothed inflation fears. 

The Fed have been out in force reassuring that the price pressures seen in multi year high inflation numbers are transitory. 

Rickett Benckiser could be in focus on news that it has been shortlisted to submit a binding offer for its infant formula business in China. 

Commodity stocks could come under pressure as base metals & oil extend declines. 

Learn more about the FTSE 

Where next for the FTSE? 

The FTSE found support around 6820 zone after having slipping through its 200 sma on the 4 hour chart and the multi-month ascending trendline. However, the index rebounded retaking these levels. The index currently trades caught between the 50 & 100 sma  

Buyers will be looking for a move above the 50 sma at 7020, opening the door to a move towards resistance at 7040. A break higher here could see the buyers gain traction. 

On the downside, the 200 sma and the ascending trendline could offer support. It would take a move below 6820 to negate he current uptrend and for the sellers to pick up pace.  

Learn more about trading indices 

How to trade with City Index

Follow these easy steps to start trading with City Index today:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

More from Trade Ideas

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.