FTSE 100 Drops To 3-Month Low As EUR/USD Hovers Above Support And WTI Rises Above $100

(MENAFN- DailyFX (IG)) ​​​Macro update ​Asian markets under pressure:

Regional equities declined as investors reduced exposure amid concerns over slowing growth and weaker earnings, with the Nikkei 225 down 3.5% and South Korea falling 5.8%.

​Middle East escalation:

The US and Iran exchanged fresh threats over energy infrastructure and the Strait of Hormuz, while Israel signalled the conflict could last weeks, raising fears of prolonged disruption.

​Oil volatility persists:

Crude prices remained elevated but volatile, with Brent crude oil near $113 and up around 55% this month as supply risks outweighed any easing from sanctioned oil flows.

​Yields surge:

US 10-year Treasury yields climbed to an eight-month high near 4.42%, as markets shifted from expecting rate cuts to pricing in potential hikes driven by energy-led inflation.

​Gold slumps sharply:

Gold dropped more than 5% to its lowest level this year, extending losses as rising rate expectations and a stronger dollar reduced demand for non-yielding assets.

​Inflation shock intensifies:

Rising energy costs are feeding through to fuel, shipping and food prices, reinforcing expectations of tighter global policy and adding pressure to growth and corporate outlooks.

​FTSE 100 drops to three-month low

​The FTSE 100 keeps on rapidly falling, having last week slid through its November to March uptrend line and then its late January to early March lows at 10,079 - 10,049. This area - if revisited at all anytime soon - is expected to act as resistance.

​Resistance below this area may be found between the November-to-mid-December highs at 9928 - 9913.

​Below the current 9760 March low beckons the 200-day simple moving average (SMA) at 9623.

​Short-term outlook:

Bearish while below the breached uptrend line at 10,160.

​Medium-term outlook:

Bearish while below the 18 March high at 10,447.

FTSE 100 daily candlestick chart

Source: TradingView

Source: TradingView ​EUR/USD tries to remain above support

EUR/USD’s sharp February to March decline has so far taken it to $1.1411, close to the $1.1392 August 2025 low, a level above which the cross has been trying to find support since last week. While this support zone holds, a recovery towards last week’s highs and the 200-day simple moving average (SMA) at $1.1648 - $1.1676 may unfold.

​This resistance zone would need to be exceeded for the 19 February low at $1.1742 to be reached.

​Short-term outlook:

Bearish while below the 17 - 20 March highs and 200-day SMA at $1.1648 - $1.1676, targeting the $1.1392 August 2025 low.

​Medium-term outlook:

Bearish while below the $1.1831 late February high.

EUR/USD daily candlestick chart

Source: TradingView

Source: TradingView ​WTI back above $100 mark

​The escalation in the US-Israel-Iran has once more pushed the price of West Texas Intermediate (WTI) crude oil above the $100 per barrel mark. A rise above the 16 March $102.44 high may put the $105 region back on the map. While last week’s low at $91.45 underpins, immediate upside pressure is expected to be maintained. Were this support level to give way, though, the $90 region may be revisited.

​Short-term outlook:

Bullish while above the 18 March low at $91.45.

​Medium-term outlook:

Bullish while above the 18 March low at $91.45.

WTI daily candlestick chart

Source: TradingView

Source: TradingView Important to know

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