FTSE 100 Cautious Higher on Brexit Agreement

FTSE 100 trades 0.58% higher at 7,209.18 on rumours that Brexit deal have been reached. EU’s Juncker said that there is a Brexit deal and GBPUSD jumped to fresh five-month highs at 1.2988. Meanwhile, the Democratic Unionist Party (DUP) reiterated its position that it has reservations about the Brexit deal. The agreement has to be approved by the U.K. parliament and the EU member states. Equity investors are cautious trying to digest the headlines from Brexit front and US-China trade agreement reached last week Friday. UK Retail Sales (month over month) came in at 0% in line with expectations in September, the yearly reading came in at 3.1% below expectations of 3.2%.

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FTSE 100 Support and Resistance

On the technical side, FTSE 100 attempts to revive the recent rebound from seven-week lows on Brexit agreement headlines and high volatility in GBPUSD. The index formed a death cross four trading sessions ago as the 50-day moving average crossed below the 200-day moving average giving a bearish signal for FTSE. On the downside, immediate support stands at 7,162 today’s low, while a break below will open the way for a test of 7,027 the August low. Below this level, the next support comes in at the lows seen on February 2019,  at 6,966. On the upside the index facing the resistance at 7,219 daily high and then at 7.262 the 200-day moving average, a close above could open the way for a move up to 7,336 the 100-day moving average.

European indices also trading higher today, Dax 30 is 0.47% higher at 12,728 the CAC 40 in Paris trading 0.14% higher at 5,705, In Milan, the FTSE MIB is 0.46% higher at 22,5296. In Wall Street, the Dow Jones futures trading 0.34% higher at 27,0.31, the S&P 500 futures are 0.33% higher at 3,000 while the Nasdaq futures are 0.33% higher at 7,975 signalling a positive start for equities in the other side of the Atlantic.

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FTSE 100 Cautious Higher on Brexit Agreement
FTSE 100 Cautious Higher on Brexit Agreement

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