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Bear Tuesday on the cards but 7115 7080 7045 support | 7146 7175 resistance

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

FTSE 100 live outlook prediction analysis for 24th August 2021

Sterling rebounded against both the dollar and euro on Monday as risk sentiment recovered after last week’s sell-off over jitters about global growth.

Just a 50 point range yesterday as the bears dropped it from 7150 to 7100 before the bulls stepped in to defend that level, and overnight we have held up well. We may well see a rise and dip today (opposite of yesterday) and an initial hold of the pivot level at the 7123 would play out well. A break of that first thing though and we more than likely slide down towards the 7078 2h support level and this area is worth a long today.

We also have the 25ema on the 30m here at 7121 to lend some weight for an initial kick up, however we are also getting near to some key resistance levels on both the FTSE100 and the S&P500 at 7160 and 4500 respectively. If the bulls do drive the prices up towards these areas (and we also have R2 and the key fib just above that at 7174) then we could see a stutter here and the bears reappear for a bit. However I don't think we will see a massive drop off these but probably more consolidation as we rise ahead of the Jackson Hole meeting (virtually this time though) on Friday.

If the bulls were to break 7175 then 7220 the previous resistance level will be the next major test and we also have the top of the 10 day Raff channel here. I am not sure that we will get that high today but bear it in mind.

If the bears were to break below the 7078 level though then it will get quite bearish and a slide back down towards 7000 may well play out, with daily support at 6950 below that. The bottom of the 20 day Raff channel is here too at 7010. Again, I am not expecting a slide down to that area today but probably more of the sideways chop this week, and a hold of the 7075 level.

On the S&P the 2h chart remains bullish with support at 4430 and 4417 so keep an eye on those levels for reactions. Likewise 15800 on the Dax for 2h support.

Gold has rebounded well following that move down to 1680 and the bulls will be keen to hold above 1800. As such, long any moves just below that as there is good support at 1795.

Good luck today.

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Asian Session

Asian stocks rose along with U.S. and European equity futures Tuesday on optimism over the U.S. vaccination drive and ongoing economic support from central banks. Treasuries dipped and the dollar held a drop.

An Asia-Pacific share gauge was set for the best two-day climb since February, helped by a rebound in Chinese technology stocks. JD.com Inc. soared after the e-commerce giant’s results weathered Beijing’s regulatory clampdown. A vow from China’s central bank to boost credit support aided sentiment.

U.S. and European equity futures edged up after American stocks extended a rebound on full approval for the Pfizer Inc.-BioNTech SE shot. The move proved to be a fillip for the reflation trade as it raises the prospect of more vaccine mandates to underpin economic reopening.

Treasury yields ticked up as traders await the Jackson Hole meeting. Oil was steady following a jump of more than 5%, with risks from Covid-19 still lingering. Gold held near the highest level in over two weeks.

Markets are in a more optimistic mood compared with last week, when doubts over the pace of the recovery were prevalent. Traders are awaiting Jackson Hole from Thursday for clues on how and when the Federal Reserve plans to scale back stimulus. Threats from the delta virus variant have raised questions about whether officials will hold off from signaling a taper timeline. [Bloomberg]

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