NFP and unemployment news later | 7552 7594 resistance | 7486 7440 support

NFP and unemployment news later | 7552 7594 resistance | 7486 7440 support

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

FTSE100 live outlook prediction analysis for 2nd June 2023

The FTSE 100 ended in the green, rising 0.59% to close at 7,490.27. The internationally-focused index climbed as progress on the US debt ceiling bill spurred risk appetite among investors.  Industrial metal miners also lifted the commodity-heavy index, which grew 2.1pc as base metal prices rose. The mid-cap FTSE 250 index also closed up 0.56% at 18,827.76.

A renewed rally in tech giants pushed Wall Street higher, with focus turning to Friday’s jobs report amid bets the Federal Reserve will pause its interest-rate hikes in June. The S&P 500 rose 1% on Thursday, reclaiming its 4,200 mark. Australian and New Zealand bond yields fell, following a decline in Treasury yields. The dollar weakened the most in more than two months.

Some nice moves caught yesterday as the new month money and a bit of relief saw markets climb well off the supports. We have NFP and unemployment news out at 1330 in the USA today which will likely see some volatility then, and possibly a buy the rumour sell the news pattern play out. Forecasts are for a drop in employment and a rise in unemployment compared to last month.

Initially today we may well get a rise towards the daily resistance level at 7545, if the bulls go for an early push past the 200ema on the 30m chart at 7530 and also R1 here. The 2h chart is positive after yesterday’s bullish action, and has support at 7460, aligning with S1, and as such a drop down to here and then a decent bounce could well play out.

Word of caution though – NFP Fridays can be quite odd sometimes so its worth doing lower stakes and being a bit more cautious.

Above the 7552 R2 level then the 7594 R3 level is next up and tantalisingly close to the 7600 – a key level that the bulls would look to break. Would certainly end the week strongly if they can get above that. Also starts to retrace the falls during May quite well. 7600 is also the daily 200ema, with daily resistance at 7630 above this.

Support wise, below the 7486 then the 7440 level is next up being yesterdays support area and the recent low, with 7398 S3 below that. I am not expecting us to slide that low unless the news is really bad!

Generally it’s looking like a positive start to the month and more upside is on the cards. The S&P500 breaking and holding above the 4200 level once again bodes well for the bulls, and the 2h support at 4213 would need to hold for a push higher.

The 2h Dax chart has decent support at 15811 so another level to keep an eye on there.

Good luck today and have a great weekend.

Recommended Broker

IC Markets – offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!

Membership and Live Trading

If you would like more detailed analysis for FTSE100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.

What you get

  • Daily Analysis pre market open (sent around 7am each day) for FTSE100, DAX40, Gold and S&P500.
  • Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
  • Telegram live trading room and webinar group membership for discussion and realtime trade updates

Keep up to date with new content, free sign up below with just your email address