The UK 100 Index has rebounded higher after testing support and forming a new low at 6835.7. The price is currently around the 50 DMA at 7194.0 and has retested the red trend line as support. Resistance is now found at the 7300.0 level and the 100 DMA, with the 200 DMA at 7327.0, which is in line with the highs from late February. A break above here would lead to a retest of 7400.0, possibly opening the way to 7600.0 and the highs at 7795.0.
Support can be seen at the red descending trend line at 7103.2, with a loss here targeting 7000.0. The 6916.3 level comes into play as the low from early February but this has been weakened by the move lower in March. The blue trend line is descending through 6905.0 at present. Support below the recent lows comes in at 6750.0 and 6640.0.
EURUSD
With Non-Farm Payrolls on the calendar for today, USD crosses come into focus. EURUSD has moved down under support at 1.23000 and broken under the 1.22400 level. This has led to a test of the 1.22141 support level today. Further losses would target 1.22000 and 1.21500, with 1.21111 below. A retest of 1.20000 would attract major interest from traders looking to open longer-term positions.
Resistance can be found at the cluster of moving averages around 1.23000, where the 50-period MA is found. The 100 and 200-period MAs are at the 1.23130 area currently. A break above the 1.23223 level could lead to a reversal higher to target 1.23765 and the descending broken blue trend line. Should price achieve a break above here, the high at 1.24761 comes into focus. The descending blue trend line is located at the 1.25000 level.
