Good evening team,
We are seeing a risk off sentiment enter the market this evening as the DXY picks up some momentum to the upside after bouncing on the 38% FIB retracement level. We are now waiting for a breakout to the upside of the falling channel formation, as highlighted in the DXY technical analysis tab. If the DXY breaks to the upside we can expect a further risk off move in the currency market, which should filter through to global equities.
The FTSE 100 is setting up a possible bear flag and head and shoulders formation which suggests a break to the downside is on the cards.
UK100 1 Hour Charts
Trade Setup: SELL Market Execution, current price (Focus Markets) 6965, stop loss 7015 and take profit 6845-6765
Stop loss: 50 pips
Take profit: 120-200 pips
Contract size on Focus Markets:
1 contract = 10 GBP per pip
0.5 contract = 5 GBP per pip
0.25 contract = 2.5 GBP per pip
Keep in mind pricing can vary depending on the broker you trade with.