FOMC rate rise today | 7165 7125 support | Russia ramps it up | 7226 7250 7271 resistance

FOMC rate rise today | 7165 7125 support | Russia ramps it up | 7226 7250 7271 resistance

FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 21st September 2022

Bit of a pump to start with yesterday that stopped just shy of the 7330 level, before a sustained decline as the war rhetoric ramps up in Russia. We also have the interest rate increases looming with the question of how much. Fed today and BoE tomorrow, with the Fed looking to raise rates to 3.25% today.

Initial resistance is at the Hull MA on the 2h today at 7200 and with the red 30m coral here as well we could see an initial drop down to the S1 level at 7125 play out. There is key fib support between these levels though at 7165 and thats just above the overnight low at 7160.

Above the 7200 level then the bulls would be looking to gain some ground towards the 7250 area where we have the 30m 200ema, and just above the 2h coral, with the key fib at 7271 above. 7292 is R1 for today, maybe a big ask for today with the Fed announcement and Russia ramping things up.

Below 7125 then its going to get quite bearish with the bottom of the Raff channels around the 7000 area and a likely bearish target. That said, the S&P500 2h chart is more optimistic, with 3833 support in play, but more likely a test and hold of S1 at the 3818 area. The 30m chart is bearish to start with so we may well get an initial dip down to that support area and then a bounce. It’s really up to the bulls to defend today ahead of the Fed. They need to break above the 3868 daily pivot really, and then 3895 where we have the 200ema on the 30m.

So, remain nimble as we have the interest rate decisions today and tomorrow. They usually say “its priced in” but we will more than likely still get reactions on the markets as they are announced.

Good luck today.

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