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
  • Heads Up:🇹🇼 Unemployment Rate (AUG) due at 08:00 GMT (15min) Previous: 4.36% https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:🇿🇦 Inflation Rate YoY (AUG) due at 08:00 GMT (15min) Expected: 4.8% Previous: 4.6% https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:💶 ECB Non-Monetary Policy Meeting due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-22
  • ECB's Muller - ECB to discuss raising regular QE when PEPP ends $EUR
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCZ9dzS https://t.co/PcCwPMAcBv
  • 🇨🇭 Current Account (Q2) Actual: CHF 11B Previous: CHF 16B https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:🇨🇭 Current Account (Q2) due at 07:00 GMT (15min) Previous: CHF 16B https://www.dailyfx.com/economic-calendar#2021-09-22
  • 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/zEEUHZjVIG https://t.co/f6mraHu6zv
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjKWitK https://t.co/JMsJPQlQ3j
  • 🇳🇱 Consumer Confidence (SEP) Actual: -5 Previous: -6 https://www.dailyfx.com/economic-calendar#2021-09-22
The CAC40 descends on trendline support

The CAC40 descends on trendline support

Walker England, Forex Trading Instructor

Talking Points

  • The CAC40 continues to decline on geopolitical risk
  • Price approaches daily support near 4,420
  • Bearish breakouts expose a move to 4,250

CAC40 Daily Chart

The CAC40 descends on trendline support

(Created using Marketscope 2.0 Charts)

Losing Money Trading Forex? This Might Be Why.

The CAC40 is trading down 2.3% on the day, amid a broad equities sell off on fresh geopolitical risk aversion. This recent decline has caused price action for the Index to now break below values of support, which includes the December 2015 low at 4,466. A move below this value is also significant because it may also be used to confirm a breakout of the symmetrical triangle depicted above. Using this pricing pattern, bearish traders may look for extensions on the CAC 40 as low as 4,250.

Traders looking for a continued decline should also be aware of long term support, which is found near 4,420. This value is found by creating an ascending trendline, which is formed by connecting a series of lows starting with the October 2014 low at 3,786. If prices break through this line of support, it would signal a significant shift in the current CAC40 trend. Conversely, in the event that prices bounce from support it would suggest that the Index might be headed for a bullish reversal. In this scenario, traders should continue to monitor values of resistance, including the October 2015 high at 5,011, to validate any fresh bullish momentum.

Traders using SSI (Speculative Sentiment Index), to gain a direction bias for the CAC40, should be aware that the index currently sits at +1.5. While this number is not extreme, when taken as a contrarian signal this may suggest future declines for the CAC40. As prices approach support, traders should continue to watch sentiment. A move of SSI over +2 or greater can be used as confirmation of any potential bearish breakouts.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

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