The Footsie ends 0.35% lower amidst concerns over global growth and US-China trade tensions that seem far from easing alongside news affirming the uncertainty surrounding a trade resolution between the two nations. In central bank news, ECB expectedly left interest rates unchanged and President Mario Draghi’s tone over the risks of an economic slowdown in the Eurozone grew gloomier while Brexit remains an unconcluded matter. Any advances in the mentioned factors continues to be the main driver of the internationally exposed Index while today’s German Business Climate index report should further clarify the Eurozone’s economic landscape.
The FTSE continued to retreat before meeting the support level at 6800 while the RSI reading falls well below the 50-midline, confirming bearish territory. The price action may bounce off the 6800 level and move towards the 20-period MA before continuing to the downside. However a trade through the 20-period MA will signal a test of resistance at 6950.
Support: 6750/ 6690
Resistance: 6890/ 6945