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.

Free Trading Guides
EUR/USD
Bullish
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
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • 🇬🇧 GBP CPIH (YoY) (JAN), Actual: 1.8% Expected: 1.7% Previous: 1.4% https://www.dailyfx.com/economic-calendar#2020-02-19
  • UK inflation - CPI jumps to 1.8% (6-month high) in January vs 1.3% in December. #gbp #sterling #trading ONS Report -> https://t.co/jqnbVTArGs
  • 🇬🇧 GBP House Price Index (YoY) (DEC), Actual: 2.2% Expected: 2.4% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2020-02-19
  • 🇬🇧 GBP Core Consumer Price Index (YoY) (JAN), Actual: 1.6% Expected: 1.5% Previous: 1.4% https://www.dailyfx.com/economic-calendar#2020-02-19
  • 🇬🇧 GBP Consumer Price Index (YoY) (JAN), Actual: 1.8% Expected: 1.6% Previous: 1.3% https://www.dailyfx.com/economic-calendar#2020-02-19
  • 🇬🇧 GBP Consumer Price Index (MoM) (JAN), Actual: -0.3% Expected: -0.4% Previous: 0.0% https://www.dailyfx.com/economic-calendar#2020-02-19
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/10:30 AM GMT to gain insight on indices and commodities for the active trader. Register here: https://t.co/gghsFsZYlx https://t.co/tQh01FumFH
  • RT @IGSouthAfrica: Last chance to register for today's 'Trading with the MACD' webinar at 12pm https://t.co/R7XmiWEjRA
  • Conflicting signals in terms of safe-haven vs growth outlook. #Brent #Oil bullish reversal (double bottom) left, and #USD #Gold bullish continuation (triangle break) right. #TechnicalAnalysis I generally have more trust in continuations than reversals but lets see https://t.co/J2QcOy4MfJ
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/0Jsg1VmjPG
The CAC 40 Trades to Monthly Lows

The CAC 40 Trades to Monthly Lows

2016-04-05 13:35:00
Walker England, Forex Trading Instructor
Share:

Talking Points

  • The CAC 40 Trades Down -2.20%
  • Price has Broken Pivot Support at 4,274
  • SSI Reads Bearish at +2.67

CAC 40 Daily Chart

The CAC 40 Trades to Monthly Lows

(Created using Marketscope 2.0 Charts)

What is next for the equities market? Click HERE for our analysts Free forecast!

The CAC 40 has traded to a new monthly low this morning, and currently down -2.20% on the day. If prices close the day lower, this will mark the fourth daily decline in the last five trading days for the Index. Peugeot is leading the Index lower, trading off -5.79% so far. Currently Nokia is the only CAC 40 component trading higher, up 0.72%.

Technical traders should note that if prices close at present levels, it would represent the first daily close below the previously discussed value of range support at 4,305. Day traders should also note that prices are currently trading below today’s S4 Camarilla pivot, which is found at a price of 4,274. If prices continue to trade below this value, it opens the CAC 40 up for further declines on continued bearish momentum. In this scenario, traders may extrapolate today’s 55 point range to find initial bearish targets near 4,219.

In the event of a bullish reversal, traders should first look for prices to rise above the S4 pivot. If bullish momentum continues, this action should be followed by an advance above the S3 pivot at 4,302. A movement to this point on the chart would then open the CAC 40 to close back inside of the previously mentioned value of range support at 4,305. In this scenario, this morning’s bearish breakout would be considered invalidated.

CAC 40, 30 Minute Chart

The CAC 40 Trades to Monthly Lows

(Created using Marketscope 2.0 Charts)

SSI (speculative sentiment index) for the CAC 40 (Ticker: FRA40) is currently reading at +2.67. This value has increased from +1.88 in our last report. When taken as a contrarian signal, this increase in sentiment may suggest a bearish bias for the Index. Alternatively, in the event of a bullish reversal, traders should look for SSI to move from its current positive extremes towards more natural values.

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.

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

DISCLOSURES

News & Analysis at your fingertips.