The FTSE traded lower before ending virtually flat on Wednesday as a drop in the pound aided in lifting the internationally exposed index. In the UK, Brexit uncertainty lingers as the UK Supreme Court ruling was not in favor of PM Johnson and leaves the question of what is to happen next ahead of the October 31st deadline. On trade news, President Trump offered positive comments as he stated that a trade deal might be reached sooner than expected which may do little to provide substantial support as there haven’t been any fundamental changed with regards to the trade situation. Today, the FTSE may take directional cues from Wall Street as the US publishes a slew of economic data. Apart from the data, traders should monitor trade and geopolitical headlines as they remain the key drivers of price action.
The FTSE opened lower on Wednesday as it made a steep decline to reach an intra-day low of 7213 before paring losses to end barely changed at 7289. The price exited its range-bound movement as it broke below 7290 and dipped below the 100-period MA at 7235 as the RSI reading met the oversold territory before easing back up. Today, look for a sustained move above 7290 to indicate buying pressure and test the dynamic resistance provided by the 20-period MA. Failure to edge above 7290 would maintain bearish pressure with a decline below the 7200 level required to signal further weakness and target the lower support levels at 7180 and 7160.