Technical analysis for FTSE 100 for 18th September 2025
The Fed cut rates as expected yesterday and we have the Bank of England's turn today, highly likely to hold given inflation ticked up yet again. Initially today we may well see the bears take the FTSE100 down towards the 9182 S1 level, and yesterdays low, but then also a test of the 9150 level where I would like to see a decent bounce, given that this is daily support, 10d Raff channel bottom, S2 and the key fib all in this area. The bulls would certainly like to see that hold for a push back up during the next 2 sessions.
A break of 9150 and the bears will likely drive it down toward 9113 S3, and then we also bring the lower daily support into play at 9027. Not that low today though!
The bulls will of course be trying to build on the climb from 9180 following yesterday's dip and will need to push past the Hull MA on the 2h chart initially which is at 9223 and has capped things so far since yesterday's close. If they manage to do so then a test of the red 2h coral is above that at 9250, where we also have S1 so any climb may well see an initial stumble here and its a level worth shorting. Higher up then the key fib and R2 are at 9280 so keep an eye on that level for a reaction.
If we do get an initial dip we may then see the buy the rumour pattern play out again, and the US markets may help to pull up the FTSE100. There is initial resistance on the 2h chart for the S&P500 at 6631 though so the bulls will need to break above that. We also have US jobless news at 1330 with 241k forecasted.
Initially today then I am thinking that we get a dip and rise with a test of the 9150 area which will be defended, mainly as we are just having the first test of the 2h Hull MA resistance at 9223.
For the S&P500 it may well be a similar pattern with a drop down to the daily pivot and round number support at 6600 before a push up towards the 6650 area. 6631 is the Hull AM resistance as mentioned so the bulls will need to break that, and we are initially seeing a drop from there. Below the 6597 30m 200ema then 6563 is the key fib as the next main support and worth a long here if seen. Also worth shorting a break of the 6597 level to target that area.
For the DAX40, again its the daily pivot as initial support at the 23402 level, with the 30m coral rising towards this as well. A hold of this initially may well then a see a climb towards the 23565 key fib, along with the red 2h coral here. Below the 23400 round number then a slide could go as far as the key fib support at 23257. That said I would like to see that 23400 level hold initially. The Raff channels are both still heading down though at the moment and the DAX40 is definitely the weaker of the three.
Good luck today.
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