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
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
USD/JPY
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
Gold
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
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • Heads Up:🇦🇺 AUD Wage Price Index (YoY) (4Q) due at 00:30 GMT (15min), Actual: N/A Expected: 2.2% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2020-02-19
  • The US Dollar rally may extend on technical signals. The Japanese #Yen rose with #gold prices as #coronavirus fears sank equities across the globe, leaving investors on the edge again here - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/02/19/US-Dollar-Uptrend-May-Prolong-Yen-Gains-as-Equities-Fall-Globally.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/wDGBH3hLcb
  • RT @lisaabramowicz1: China’s economy was likely running at just 40%-50% capacity last week: Bloomberg Economics https://t.co/zkRkm5VzxU
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/1:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/GmUZSp9bvu
  • 🇯🇵 JPY Trade Balance (JAN), Actual: -¥1312.6b Expected: -¥1684.8b Previous: -¥154.6b https://www.dailyfx.com/economic-calendar#2020-02-18
  • 🇯🇵 JPY Machine Orders (YoY) (DEC), Actual: -3.5% Expected: -1.3% Previous: 5.3% https://www.dailyfx.com/economic-calendar#2020-02-18
  • 🇯🇵 JPY Machine Orders (YoY) (DEC), Actual: -12.5% Expected: -1.3% Previous: 5.3% https://www.dailyfx.com/economic-calendar#2020-02-18
  • 🇯🇵 JPY Trade Balance (JAN), Actual: -1312.6B Expected: -¥1684.8b Previous: -¥152.5b https://www.dailyfx.com/economic-calendar#2020-02-18
  • RT @CNBCJou: European car sales -7.4% - France: -13.4% - Germany: -7.3% - Spain: -7.6% #autos
  • Heads Up:🇯🇵 JPY Machine Orders (YoY) (DEC) due at 23:50 GMT (15min), Actual: N/A Expected: -1.3% Previous: 5.3% https://www.dailyfx.com/economic-calendar#2020-02-18
CAC 40 Channels Ahead of FOMC

CAC 40 Channels Ahead of FOMC

2016-04-27 12:20:00
Walker England, Forex Trading Instructor
Share:

Talking Points

  • The CAC 40 Consolidates Ahead of Today’s FOMC Rate Decision
  • Daily Channel Resistance is Found Near 4,660
  • Sentiment is Negative with SSI reading at -1.28

CAC 40 Daily Chart

CAC 40 Channels Ahead of FOMC

(Created using Marketscope 2.0 Charts)

Find out what is instore for the global equities market.Click HERE for our analysts Free forecast!

The CAC 40 is little changed this morning, trading up .19%, as international markets await todays FOMC rate decision. Expectations are for the FOMC to hold key rates at .50%. Any deviation from this policy could have a systemic effect on markets as central banks are now seen as coordinating their policy decisions. Regardless of the outcome of today’s FOMC event, traders should expect increased volatility from markets around this high importance release.

Technically, the CAC 40 has been trading in a descending price channel going back to the August 2015 high at 5,218. Prices have been retracing slowly back towards channel resistance for the last two months, after putting in a new swing low at 3,890. Now as prices close in on this long-term resistance near4,660, prices are again consolidating.

CAC 40 4Hour Chart

CAC 40 Channels Ahead of FOMC

(Created using Marketscope 2.0 Charts)

In the graph below, we can see this consolidating with a short-term price channel developing on the 4Hour chart. If prices breakout above the displayed line of declining resistance, I would then look for prices to challenge the longer term resistance line near 4,660. Alternatively, if prices break lower, it opens prices to retest our previous swing low. In this scenario, traders should first look for prices to challenge the previous swing low at 4,424, followed by a move to a new monthly low beneath 4,211.

Find out the latest positioning totals with DailyFX’s sentiment page

As of this morning SSI (speculative sentiment index) for the CAC 40 (Ticker: FRA40) stands at -1.28 with 56% of positions net short. When taken as a contrarian signal this small negative value has a slight bullish bias. If prices break higher, outside of the depicted price channel, it would be expected to see sentiment figures turn lower. Conversely, if prices channel lower, traders should watch for SSI totals to flip to a positive reading.

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

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

Do you know that the times you trade can be just as important as your trading strategy? Read page 16 of the Traits of Successful Traders Guide to learn about the best times to trade [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.