Non Farm Payrolls 175k | 7350 7385 resistance | 7286 support

7th July 2017

Well we got the dip and rise yesterday, just dipping a bit further than the 7344 support area as the North Korea debacle ramped up a bit, oil fell over 3% and German Bund yields hit their highest in 18 months which spooked everyone. The FTSE 100 fell to 7303 and then bounced back though, testing the new resistance at 7350. Overnight its stayed around the 7320 level – surprisingly staying above 7300 even as the US markets sold off after we had closed.

Today we will see the U.S. Labor Department report official jobs figures. American employers probably added around 175,000 workers in June and wage growth is expected to have strengthened, consistent with a solid labor market, economists project.

Bonds across Asia joined a rout that pushed German yields to 18-month highs. Bunds tanked following a weak French debt auction, taking Treasuries with them, and the declines intensified as European Central Bank minutes underscored concerns about stimulus tapering. The yen dropped after the BOJ announced its first unlimited fixed-rate bond-purchase operation since February. Asian equities retreated after the S&P 500 Index fell the most since May, while gold and oil also dropped.

FTSE 100 Outlook and Prediction

FTSE 100 Prediction Daily Channels
FTSE 100 Prediction Daily Channels

Its NFP news today so its always a tricky day to call. The consensus is that employers added 175000 workers during June, and wage growth is expected to have strengthened, which will show a solid labour market. Of course the news might be totally different to that so stay nimble!

I am looking at resistance at 7347 to start with today and support at the 7260 to 7270 area, assuming the bears break below yesterday’s low of 7303. There is also support at XXXX to bear in mind.

The ASX200 had a dip and rise day, similar to ours yesterday, however, their futures prices hadn’t followed us – so I don’t think we will follow that move today as closely as we usually do.

I am thinking that we will get an initial rise as the bulls come charging out the blocks, building on this small bounce form the lows yesterday, but it will be interesting to see if they are able to break through the 7350 level. There is still a chance that we get 7405, though with their repeated failure to break 7380 this week it might just be reliant on the NFP news to do that, if at all. Worth shorting if we do see it, though there is daily resistance at 7387.

I am going to try the short at the XXXX area but NFP Friday means smaller stakes and a bit less risk.

The bottom of the Bianca channels are both around the 7270 area so this area might well see some buying if we get that low.

Want more detailed analysis for FTSE 100, DAX, Gold and S&P? Then please join our active members community.

What you get

  • Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
  • Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
  • WhatsApp and webinars group membership for discussion and realtime trade updates