The FTSE 100 has been corrected against the backdrop of business activity statistics.

The current state of affairs Following the release of negative numbers from the United Kingdom, the FTSE 100 index is currently trading at 7132

Market participants were disappointed by data on the UK economy's most important sectors:

In August, the Manufacturing PMI fell 0.3 points to 60.1, while the Services PMI rose 0.3 points to 63.0. From 59.6 points a month ago, the PMI has dropped to 55.5 points. The Composite PMI declined from 59.2 points to 55.3 points as a result of the negative dynamics.

Furthermore, the slump in the equities market has aided the FTSE 100's correction.

The 5-year UK Treasury bonds were auctioned yesterday at a yield of 0.324 percent, which is lower than the previous auction's yield of 0.334 percent. Whitbread PLC (+4.53 percent), Rolls-Royce Holdings PLC (+3.99 percent), and Evraz PLC (+3.21 percent) are the index's growth leaders.

J Sainsbury PLC (-4.85%), Imperial Brands PLC (-2.18%), and B&M European Value Retail SA are among the leading decliners (-1.79 percent).

Quotes are on the rise all around the world. The Alligator indicator's fast EMAs are still above the signal line, limiting the fluctuation range, and the MACD histogram is approaching the transition level, indicating a weak buy signal.

7130 and 7230 are resistance levels while 7070 and 6970 are two levels of support.

Short trades with a target of 6970 might be opened if the asset continues to decline and the price consolidates below the local support level of 7070 is the stop-loss level.

UK100 FTSE

This week will be relatively quiet in Canada, as the United States releases its preliminary GDP, unemployment claims, and Powell speaks on Friday. USDCAD has bottomed out and fell a little over 1% in the last two trading days after setting fresh highs. The USD news this week will most likely influence where the pair moves this week.

Based on recent unemployment claims data, I believe the US will either outperform forecasts by a little margin again this week, or the number will be lower than last week. We may see the pair continuing to fall lower early in the week, but if it reaches a certain level, I believe it has a decent possibility of rebounding to the upside. When Powell speaks later this week, as well as the Jackson Hole Symposium on Thursday, expect more volatility.

The 1D chart of the USDCAD remains positive after reaching fresh highs at the 1.2950 level. For the second time, price has broken out of its consolidation zone, which might potentially function as a new level of support. I believe there is some value in playing the long side of this pair if pricing decides to return to this levels i.e. 1.2600-1.2500. Fibo levels are also endorsing my calculations and we may see a good support @ 1.2590 that is 61.8% and near 50% level i.e. 1.2480. MACD is also showing bullish moves in coming days. EMA of 20,50 & 200 is not yet align but at given support levels it may endorse our stance.

So, stay long from given levels to earn good profit in coming days.

“Trading is an art of decision making”

USD/CAD

A five-day view of negative news for the AUD and a safe haven bid for the USD has brought the AUD/USD down over 3%, back to levels last traded in November 2020. On a one- to three-month horizon, we anticipate a possibility of further decline in the currency pair towards 0.70 before the AUD begins to recover next year. After an atrocious performance last week, the Australian Dollar is reacting to a fresh round of economic data to open Monday's session. This morning, Markit Economics released PMI data that reveals the Australian economy is still struggling despite continued lockdowns across the country. Services at 43.3, the PMI remained in contractionary territory. The manufacturing PMI fell to 51.7, implying a slower growing rate. As the Australian Dollar has broken through a crucial technical support confluence, keeping the AUD/USD focus lower and below the target August open of 0.7328. If price is truly headed lower to 0.7160, exposing important support into the 0.7050 zone.

AUD/USD

On the H4 chart, a strong resistance zone has formed, and the price is currently approaching this strong resistance zone as it moves higher. Furthermore, the 200 moving averages are converging at the same level, making this a critical resistance zone for us. In addition, a bearish hidden divergence has formed between the first high at 1830 and second high at 1782.51, which was followed by a bearish divergence based on the MACD indicator. We can interpret these as indications of bearish pressure, and there are currently no signs that contradict this bearish view. So, based on all of this, there are two probable scenarios from here, in my opinion. The price may travel directly lower from the current zone, or it may move in the opposite direction. Price may make a one-time push higher, reaching major resistance, and then bouncing lower from this area. In any case, unless the critical resistance zone holds, my outlook remains bearish. In my view gold may be settle at 1765 before making an uptrend as Covid fear is again gearing up.

Syed Faysal

Syed Faysal

Aug 25 2021

UK100 FTSE

Syed Faysal

Aug 24 2021

USD/CAD

2

3

Syed Faysal

Aug 23 2021

AUD/USD

Syed Faysal

Aug 23 2021

XAU/USD