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Dip and rise with 7110 7085 support today | 7138 7155 7180 resistance

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

Orders placed with US factories for business equipment unexpectedly stalled in July after four straight gains, marking a pause in a months-long buildup in capital investment.

FTSE 100 live outlook prediction analysis for 26th August 2021

The bulls are hanging on at the moment and the price has been supported by the 30m 200ema overnight at 7120. As such we could see an initial kick up towards the 30m coral resistance line at 7138 to start with, but the bears may then step in. A drop down towards the 7085 level looks like it may well play out today and we have decent support here from the 2h coral and the key fib for today. It's also the S2 level.

If the bears were to break bellow the 7080 level then a slide down to S3 at 7062 would be likely, the ultimate target for the bears being the bottom of the 20 day Raff channel and round number at 7000. I am not expecting that we will drop down that low today though. The S&P has only had a modest bearish reaction at the 4500 level and the new record highs so far, however, that's probably treading water ahead of the Jackson Hole meeting tomorrow. Bears dont want to get burned having been squeezed yet again!

For the bulls they will be looking to take the FTSE100 above the 7140 level as that then keeps that 7200 level in play, and we have R3 there at 7201 for today. The 10 day Raff channel is heading down still and has 7230 as the top of that channel.

I am still running a bit of my FTSE long from 7085 the other day, and the stop remains at 7090.

So generally today I am thinking that we get a dip and rise across the board.

Good luck today.

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Asian Session

Asian stocks fell Thursday on caution about the regulatory outlook in China and a looming Federal Reserve gathering that may provide more clues about its approach to paring stimulus. The dollar rose.

MSCI Inc.’s Asia-Pacific gauge snapped a three-day rally, with Chinese stocks resuming a retreat amid Beijing’s crackdown on private industries. South Korean shares dipped after a central bank rate hike that makes the nation the first major Asian economy to start exiting record-low borrowing costs.

U.S. equity futures declined after the S&P 500 and Nasdaq 100 edged up to records overnight. The 10-year U.S. Treasury yield held an advance. Traders are looking ahead to the Jackson Hole symposium, which may offer fresh insight on how the Fed intends to scale back bond purchases.

Views are split on whether Chairman Jerome Powell’s speech to the symposium Friday will provide a clearer guide on tapering emergency Fed support. While the ongoing economic rebound and elevated inflation add to the case for starting policy normalization, the fast-spreading delta virus strain threatens a slower pace of recovery than some had expected.

Powell’s “speech will likely emphasize the economic recovery is well past the crisis and that they will shortly announce they are ready to taper asset purchases,” Edward Moya, senior market analyst at Oanda, wrote in a note.

The latest U.S. data showed orders placed with factories for business equipment unexpectedly stalled in July, marking a pause in a months-long buildup in capital investment.

Elsewhere, crude oil dipped below $68 a barrel, paring a rally this week driven by bets that demand will weather the delta virus strain’s impact on the economic recovery. Gold fell below $1,800 and Bitcoin traded around $48,000. [Bloomberg]

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