News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.30% FTSE 100: 0.90% France 40: 0.72% US 500: 0.49% Wall Street: 0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/FZK4kbEVcr
  • Senior Biden Adviser says US-China phase 1 trade deal has been a debacle, adds that Biden would use tariffs in aggressively enforcing US trade laws if elected
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.45%, while traders in NZD/USD are at opposite extremes with 69.15%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/2u8wGqACUR
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.07% 🇨🇦CAD: -0.05% 🇨🇭CHF: -0.10% 🇬🇧GBP: -0.16% 🇦🇺AUD: -0.22% 🇪🇺EUR: -0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/88MAfkG7Nt
  • UK PM Johnson says virus restrictions likely to last 6-months $GBP
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDn8ejP https://t.co/CjCiVL0C9q
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/S9CEcBm5Qe https://t.co/0gQ60Dd1S5
  • Optimism $GBP https://t.co/UjSo3Dpthr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.44%, while traders in NZD/USD are at opposite extremes with 70.05%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/n7ePyLk3EB
  • Heads Up:🇧🇷 BCB Copom Meeting Minutes due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-22
CAC40 Prepares for an Inside Bar Breakout

CAC40 Prepares for an Inside Bar Breakout

2015-10-26 18:45:00
Walker England, Forex Trading Instructor
Share:

Talking Points

  • The CAC40 is set to close inside Fridays price action
  • Reference resistance is set at 4,950
  • Current ATR sets bullish projections to 4,904.21

Like many indicies around the world, the CAC40(FRA40) is hovering near new highs for the month of October. The index has experienced a fresh round of bullish momentum based on the most recent statements from the ECB suggesting that the central bank may exapand their current QE program. However, after Thursdays initial breakout and Fridays continuation, the CAC40 can be seen consolidating to start this weeks trading.

FRA40 1Day Chart

CAC40 Prepares for an Inside Bar Breakout

(Created using TradingView Charts)

Looking for more analysis on markets? Sign up for my email list here: SIGN UP HERE

As seen above, the CAC40 (FRA40) is set to close Monday’s trading with the formation of an inside bar pattern. This formation is indicative of market consolidation, and is created using Fridays candle as a reference for values of support and resistance. Support is identified using Fridays low at a price of 4,822. Resistance is found using Fridays high at a price of reference of 4,950. With prices closing “inside” today, traders may begin preparing for a breakout later in the week.

In the event that the market breaks through either support or resistance, traders may use ATR to plan their projections for the index. Currently 1X daily ATR reads at 82.21 which will place bullish projections at a price of 4,904.21. Conversely, if prices break through support at 4,822, traders will begin to project prices towards a value of 4,739.79 on fresh bearish momentum.

Alternatively, if prices fail to breakout, it may signal continued consolidation for the CAC40 along with other indices. In this scenario, any breakout of support or resistance may be delayed. Traders may continue to wait for a breakout in this scenario, or opt to look for new range based positions based off of the markets current conditions.

To Receive Walkers’ analysis directly via email, pleaseSIGN UP HERE

Do you know the biggest mistake traders make? More importantly, do you know how to overcome the biggest mistake? Read page 8 of the Traits of Successful Traders Guide to find out [free registration required].

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES