London, England -- (SBWIRE) -- 04/15/2011 -- As Chief Technical Analyst at City Index (http://www.cityindex.co.uk/), Sandy Jadeja has a wealth of experience in spread betting. Here, he gives an overview of activity surrounding the EU markets on 7th April.
MARKET SNAPSHOT
After recent gains the markets have open the day in a relatively flat mood. The FTSE 100 is trading at 6042 which is within a resistance zone of 6050-6117. The possibility of a reserved move higher cannot be ruled out but a short term pivot low at 6030 is suggesting that a pullback down to the 6015 – 5990 is likely if we see weakness set in later in the morning session. The US Futures are flat at 12,360 and after seeing the Dow close at 12,426 leaves the index just shy of a +1% move before it hits a Major resistance target of 12,545. Today the Dow will need to sustain support at 12,395 otherwise 12,285 may be a downside target.
COMMODITIES
Crude Oil also is trading flat at the $108.65 mark. The last three sessions have created a narrow range environment which simply shows the commodity is in a consolidation state. However there is now a divergence setting up between technical indicators and the recent price action. It could be that the upside may be limited to $111 - $115 before a correction takes Oil down towards the $100 level.
CURRENCIES
EUR/USD has come off from the 1.4349 high and the hourly chart is now starting to show signs of weakness which could see the currency trade down towards 1.4250 – 1.4193 unless the high of 1.4313 is cleared. EUR/CHF has also been weak from the overnight session and seems to be hovering at the 1.3091 support level. Upside resistance at 1.3125 – 1.3145 may prevent the currency from seeing further short term bullish plays after yesterday afternoon’s sharp rally from the 1.3067 low. GBP/USD bounced from 1.6263 and is likely to see a test of 1.6340 – 1.6363 before the afternoon session kicks in.
Learn more about financial spread betting with City Index at http://www.cityindex.co.uk/spread-betting/ .
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
About City Index
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, contracts for differences (CFDs) and, in the UK, spread betting.
We constantly look to widen the range of assets we offer, improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. Visit http://www.cityindex.co.uk/ for more information.