CAC 40 Trades Flat Ahead of ECB
- CAC 40 Consolidates Ahead of ECB Rate Decision
- Sentiment Totals Remains Extreme with SSI Reading at -3.00
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The CAC 40 is trading flat, down just -0.04% so far in today’s trading. This consolidation is in anticipation of the ECB’s upcoming rate decision, later this morning. Expectations for the event are for the ECB to hold rates flat at 0.00%. Regardless of the outcome however, traders should continue to monitor support and resistance for a market breakout.
Levels of resistance include today’s R4 Camarilla pivot at 4,571.46. A move above this value would suggest a bullish breakout, and a continuation of the CAC 40’s current uptrend. Alternatively, final intraday support may be found at the S4 pivot at 4,523.88. A move through this value would be significant as it would place the CAC 40 near weekly lows.
CAC 40, 30 Minute Chart with Pivots
(Created by Walker England)
Traders tracking sentiment should note that current ratio of long to short positions for the CAC 40 (Ticker: FRA40) stands at -3.00. This value remains extreme with SSI indicating that only 26% of positioning is long the market. Typically when SSI is reading at a negative extreme, it suggests that the market may be prepared to trade higher. In the event that the CAC 40 continues to trade higher, it would be expected to see SSI remain negative. Alternatively if the current uptrend reverses, and prices decline, it would be expected to see SSI decline towards more neutral readings.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.