Markets require a positive close today

Today could be a decider for UK and US stock indices. After seeing a week of selling, the markets lost hope of breaking to the upside. However with a positive open today we may see a turnaround and if a strong lose can take us above key levels then next week could be interesting.

On the UK side we would like to see today mark a positive close for the FTSE 100. Ideally closing above 5445, which has been the line in the sand for the index, would indicate that next week could take the FTSE towards the 5600 target. Yesterday’s high of 5543 will need clearance to tackle the upside levels. If at all the index breaches the lower pivot of 5340 then that would clearly suggest that we are likely to move to the downside.

The Dow Jones will require a move above 11652 to aim for 11716. Today the index getting past 11571 would help lift momentum into positive territory and then pave the way for the 11716 target. Bears may try to take the index in the late session below 11391 – 11360 to show their hand at another attempt to drag the index lower.

After making a low at 104.88 the EUR/JPY pair traded higher. Today the pair looks set to challenge the 106.50 level on the basis that the 105.00 support level is not taken out. If so, this would open the pathway for lower prices again to the 104.50 area.

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