The CAC 40 Trades Flat Ahead of ECB
- The CAC 40 is Trading Flat Ahead of the ECB
- Daily Resistance Holds at 4,480
- SSI Reads Neutral at -1.07
CAC 40 Daily Chart
(Created using Marketscope 2.0 Charts)
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The CAC 40 continue to trade sideways this Tuesday, consolidating ahead of Thursday’s ECB rate decision. For the day, the Index is little changed, down just .28% on the session. Of the 40 listed stocks, GLE (Societe Generale Group) is leading the CAC 40 today trading up 1.91%. Going into Thursday’s event, expectations are set for the ECB to keep rates unchanged at .05%. However, a change from this policy may bring unexpected volatility to the market. This is especially true if a dovish ECB looks to further reduce borrowing costs further from the current record lows.
Technical traders should continue to monitor support and resistance going into tomorrow’s rate decision. Currently, support for the CAC 40 is found near today’s low at 4,362. This point is marked by an ascending trendline, which connects a series of lows starting with the February 11 low at 3,890. Conversely, resistance is marked by the standing March 16 high near 4,480. With price action in its fifth straight day of consolidation, traders will look to a breakout from either of these values to help determine the markets chosen direction.
SSI (Speculative Sentiment Index) for the CAC 40 (Ticker FRA40) is again little changed from our last report, and is currently reading at -1.07. This value is indicative of the current market environment, which is ranging sideways at present. Traders looking for clues from sentiment may want to reevaluate SSI after tomorrows ECB rated decision. In the event of a price breakout, traders may confirm the move by looking for a new sentiment extreme.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.