The FTSE extended its decline by 0.65% on Thursday to end at 7077 as weaker than expected services PMI figures of the US and the Eurozone weighed on the day and heightened global growth concerns. Meanwhile in the UK, PM Johnson’s newly proposed Brexit plan was not well received by unconvinced EU officials which will leave Brexit uncertainty continuously lingering. Today, the FTSE’s direction will be influenced by Wall Street as the US publishes its impactful monthly NFP report. While growing economic concerns will leave attention to the data, trade and Brexit developments will continue to be key drivers of price action and influence market sentiment.
The FTSE lost 44 points as it fell below the support at 7120 to record an intraday low near the psychological support at 7000 before paring losses to end at 7044. Today, look for a sustained move below 7040 to lead the index to the support at 7000 which separates the FTSE from further weakness and the lower support levels at 6970 and 6910. Holding above 7040 would maintain range bound price action while a trade above 7080 would be required to indicate buying pressure. Look for the RSI reading to exit the oversold area coupled with a sustained move above 7080 to stage a short-term rebound and target the higher resistance levels at 7115 and 7150.