The FTSE traded 0.17% lower on Thursday amidst mixed corporate earnings results. Moreover, market sentiment turned weak as the ECB didn’t cut rates as had been expected however upheld the region’s deteriorating economic outlook and future monetary policy easing. With no major economic releases out of the UK or Eurozone, the FTSE should take directional cues from corporate earnings and Wall Street as the US publishes its Q2 GDP reading.
The FTSE lost 12 points to end at 7489. The index recorded an intra-day high of 7542 and low of 7462 in another day of range bound price action. However, the new low suggests that there may be downside pressure in store for the FTSE and trader should look to a sustained move below the 20-period MA around 7520 to lead the FTSE lower where a break below 7470 would be required to drive the FTSE lower. Alternately a move above 7520 would indicate buying pressure and lead to a test of yesterday’s high at 7542 followed by the resistance at 7570.