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. See our updated Privacy Policy here.

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
Subscribe
Please try again
More View more
Real Time News
  • Fed's Waller: - Inflation running well above 2% target - If next two jobs reports come in as strong as the last report, Fed can taper by September
  • RT @ZabelinDimitri: Rising Australia-#China tension could compound medium-term bearish outlook for #AUD https://www.dailyfx.com/forex/fundamental/article/guest_commentary/2021/08/02/Australian-Dollar-at-Risk-on-Delta-Variant-China-Tensions.html
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Gold: 0.03% Silver: -0.07% Oil - US Crude: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nelpgGVZMs
  • The USD Majors are poised within well-defined setups into the open of the month with a host of event risk on tap this week including the RBA & BoE interest rate decisions, NFP and Canada employment. Get your market update from @MBForex here:https://t.co/AbgczavQ22 https://t.co/KFcMs4zNmW
  • Bitcoin (BTC), Ethereum (ETH) giving back some of the weekend’s gains. Ethereum/Bitcoin spread makes a break above trendline resistance. Get your cryptocurrency update from @nickcawley1 here:https://t.co/WaYpm3pbN2 https://t.co/tvd4PHuB9Y
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.64%, while traders in France 40 are at opposite extremes with 78.21%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/7kvnpUR5Lp
  • Federal Reserve: Responses indicate that bank lending standards have eased notably since 2020
  • Federal Reserve: - Commercial real estate loans are in higher demand - Banks reported having eased standards and terms on commercial, industrial, and household loans during Q2
  • Federal Reserve: - Lending standards are at the easier end of the historic range - Commercial and industrial loans are in higher demand
  • Gold Price Forecast: XAU Gears Up for NFP, Can Bulls Bid the Break? https://www.dailyfx.com/forex/technical/home/analysis/xau-usd/2021/08/02/Gold-Price-Forecast-Gold-Gears-Up-for-NFP-Can-Bulls-Bid-the-Break.html $Gold https://t.co/OCWUzF0Xkb
CAC40 Declines in Early Trading

CAC40 Declines in Early Trading

Walker England, Forex Trading Instructor

Talking Points

  • CAC40 declines in early morning trading
  • Trendline support is found at 4,755
  • A bearish breakout exposes 4,400

CAC40 1Day

CAC40 Declines in Early Trading

(Created using TradingView Charts)

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

The CAC40 (FRA40) Index is currently trading down -1.68% on the day as French stocks have rapidly declined in early trading. Other European indices have sold off as well, including the DAX (Ger30) as shares around the world are beginning to react to growing concerns regarding geopolitical uncertainty. Technically, the CAC40 has been moving lower after stalling near the psychological 5,000 level earlier this month. As prices continue to decline, traders are beginning to look for values of support to ascertain whether the CAC40 will bounce, or breakout to new monthly lows.

Currently, prices are approaching price support in the form of an ascending trendline. This line depicted above has been created by connecting the October 14th low (4,580) with the current November low which is found at a price of 4,713. When coupled with Fibonacci analysis, potential support can be found using a 83.2% retracement value at a price of 4,755. If prices remain supported over this point, traders will again look for a bounce in the Index that may potentially test the current November high, which stands at a price of 4,963

Alternatively, if the CAC40 continues to decline and breaks below the previously mentioned value of support, traders can begin targeting lower lows. Long-term support is found again in the form of an ascending trendline. This line of support has been drawn by connecting the October 2014 low with both the July and September 2015 lows. This places long-term support for the Index near 4,400 at present.

See Walker’s most recent articles at his Bio Page.

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].

Contact and Follow Walker on Twitter @WEnglandFX

Video Lessons || Free Forex Training

Trading Using Fibonacci (13:08)

Reading the RSI, Relative Strength Index (13:57)

Money Management Principles (31:44)

Trade Like a Professional Workshop (1:44:14)

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

DISCLOSURES