FTSE 100 Bullish Ahead of Key Announcements
The chart of the UK stock index FTSE 100 (UK 100 on FXOpen) shows prevailing positive sentiment in the market. The right side of the daily chart displays a series of bullish candles, with a likelihood of this trend continuing today, as the price has been rising since the market opened.
This optimism is likely driven by the anticipation of key announcements:
Tomorrow at 09:00 GMT+3, the UK CPI figures will be released. Analysts expect inflation to remain steady without an increase.
Also tomorrow, at 21:00 GMT+3, the Federal Reserve will announce its decision on interest rates, with a cut seeming inevitable.
Technical analysis of the FTSE 100 (UK 100 on FXOpen) chart shows:
In 2024, the price movement has followed an upward blue channel. The period starting in May may represent an interim correction (marked by red lines) within the ongoing uptrend.
The significance of the current rise lies in it being the second attempt to break through the upper red line, offering a chance to exit the corrective channel and resume growth. The first attempt was unsuccessful, as the bullish breakout above the upper red line encountered resistance from the median of the blue channel (indicated by an arrow).
Therefore, tomorrow's expected volatility spike could either reinforce the positive momentum, pushing the FTSE 100 (UK 100 on FXOpen) higher beyond the red line, or act as a "cold shower," undoing recent bullish gains and driving the price back into the red channel.
Read more: https://fxopen.com/blog/en/oa-ftse-100-bullish-ahead-of-key-announcements/
Text source: Forex Trading Blog
