The FTSE traded 1.17% higher as global markets rallied at the back of the prospects of easier monetary policy from global central banks and renewed trade optimism after President Trump tweeted that US-China trade talks would resume prior to the confirmed meeting at the G-20 summit next week. Moreover, The ECB joins in on the Fed’s dovish stance and provided support for global equities as President Draghi expressed willingness to deliver monetary policy stimulus in the face of the Eurozone’s slowing economy. Improved sentiment towards the US-China trade situation and stimulus hopes from the ECB and the FED should buoy market sentiment and the FTSE’s gains ahead of the highly anticipated FOMC meeting later today.
The FTSE traded through the 7370 level and overcame resistance at 7420 to tag the 7470 key resistance level before ending at 7443. While price has formed a higher high, the RSI reading has so far failed to correspond and is seen forming a lower high which could confirm a bearish divergence should the RSI reading fail to push higher alongside price action. Look for a break above 7470 to clear the path towards the higher resistance at 7520 with immediate support found at 7420. Alternately a decline below 7420 would signal a short-term pullback and target the lower support at 7370.