The FTSE managed to trade 0.55% higher on Thursday while other European Indices lagged and traded lower following the ECB conference meeting. The bank’s policy statement revealed that the hold on interest rates will be extended into next year while President Draghi stated that the ECB would take necessary measures in response to deteriorating economic conditions in the face of global trade uncertainty. Markets interpreted the forward guidance as less dovish than expected which weighed on some European majors. Meanwhile, London’s blue-chip index was supported by oil majors boosted by a higher move in oil prices. Today, the FTSE will likely take cues from Wall Street as the US publishes its non-farm payrolls data and unemployment rate.
The FTSE ended at 7259 on Thursday as price managed to extend gains past the resistance at 7260 towards 7280. Today, overcoming the 7280 level would make room for price to drift towards the resistance at 7310 which would enable gains towards 7370 if breached. Moreover, price has managed to hold above the 20-period MA at 7200 which would negate the bullish view should price decline below that level. Look for a trade below 7235 to target the support at 7200, while sustained price action above 7235 would maintain buying pressure on the FTSE.
Support: 7235/ 7200
Resistance: 7280/ 7310