The UK 100 Index has positioned itself in a holding pattern over the last three days, after breaking above the resistance level of 7224.50 on Tuesday, with this level now becoming firm support. Further support comes from the 50 DMA at 7201.00, with a move under here handing control back to bears, who may try for a retest of the descending red trend line at 7040.00. Bulls could step in at that point to defend the breakout but a loss would target 7000.00, followed by 6916.3. The falling blue trend line comes in at 6859.00, with the March low at 6837.5.
Resistance above the current price level comes at 7278.0, supported by the 100 DMA at 7288.3. This is in the zone around the 7300.00 level, with the 7310.00 level above and the 200 DMA above that, at 7322.30. The 7340.00 level was the late February high, with 7372.00 guarding the way to 7400.00. A break above here clears a lot of resistance out of the way leaving little to prevent a run to 7500.00.
EURUSD
The EURUSD pair has created a sideways price action pattern with lower highs and higher lows. It is conceivable that price can reach higher from current levels but an event is needed to give the market a reason to drive price out of this sideways pattern. Resistance can be seen at the falling broken trend line at 1.23660 and the two touch blue trend line at 1.24295. The falling blue longer-term trend line is currently at 1.25000, which is a resistance level traders will pay attention to. The highs from January come in at 1.25372 and the February high is 1.25549.
Support can be seen at the 50 DMA at 1.22927 and the rising red trend line at 1.22575. The 1.22400 level represents the highest level that buyers have stepped in to buy the lows at over recent weeks. This buying zone extends down to 1.21640, which has two touches on it, but a loss of the 100 DMA at 1.21795 puts this in doubt. The 1.20809 level remains key support, with the 200 DMA at 1.19433.
