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
Mixed
Oil - US Crude
Mixed
Wall Street
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
Gold
Mixed
GBP/USD
Mixed
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
More View more
Real Time News
  • LIVE IN 30 MIN: In this session, Strategist @DavidJSong will discuss trading strategies for the top event risk in the week ahead https://www.dailyfx.com/webinars/175202251
  • The possibility of a Covid-19 cure by year end keeps market sentiment high despite ongoing political tensions. Get your $USDMXN market update from @HathornSabin here: https://t.co/6DIf6krA3E https://t.co/IxeRbjHpQm
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/qqWZkK1G8B
  • The commodity currencies, AUD, CAD, and NZD, which typically benefit from their higher yield profile relative to other currencies (the carry trade), no longer hold this advantage. Get your #currencies market update from @CVecchioFX here: https://t.co/3oWXhp0hCX https://t.co/qOgXnf0JKK
  • The long-term outlook for the Euro has been boosted significantly by a Franco-German proposal for a €500 billion coronavirus Recovery Fund, even though an agreement is not yet close. Get your $EURUSD market update from @MartinSEssex here: https://t.co/onP43pXuDi https://t.co/nynDJ9P6br
  • On Friday, EUR/GBP surged to an over six-week high at 0.8940 then closed the weekly candlestick in the green with a 2.3% gain. Get your $EURGBP market update from @malkudsi here: https://t.co/ln09Ijn7rd https://t.co/OCe7fzGGC0
  • The Canadian Dollar has proven stable in recent weeks following a dramatic turn lower in March, guided to the downside by energy markets. Get your $USDCAD market update from @CVecchioFX here: https://t.co/7tlrn74X3t https://t.co/OGqZzWaxU4
  • As political tensions between the US and China increase, $gld is picking up a safe-haven bid ahead of the long weekend and may look to press higher. Get your $XAUUSD market update from @nickcawley1 here: https://t.co/boUn4vyfCO https://t.co/sVtnBALhw7
  • Both WTI and Brent crude futures have conformed to the negative risk tone, however, investors will be eying the latest Baker Huges rig count for another drop in #oil rigs. Get your market update on currencies, commodities & stocks from @JMcQueenFX here: https://t.co/G6CEBzNXVA https://t.co/gosmDwkKSX
  • The $USD gained ground while the $SPX Index edged lower headed into the final trading session this week. Get your #equities market update from @RichDvorakFX here: https://t.co/lgn2Pg0TAH https://t.co/Wq3t8Q67U0
CAC 40 Advances Higher as Brexit Fears Ease

CAC 40 Advances Higher as Brexit Fears Ease

2016-05-24 12:45:00
Walker England, Forex Trading Instructor
Share:

Talking Points

  • CAC 40 Prices End 13 Days of Consolidation as Brexit Fears Ease
  • CAC 40 Prices Reach New Weekly Highs as Prices Trade up 1.48%
  • Sentiment Readings Continue to Decline, SSI Reads at +1.16

CAC 40 Daily Chart

CAC 40 Advances Higher as Brexit Fears Ease

(Created using Marketscope 2.0 Charts)

What’s next for equities market? Find out more with our analysts Free forecast!

The CAC 40 has surged to a new weekly high this morning, with the Index trading up 1.48% on the day. All 40 listed stocks are trading higher, with Societe General leading the group trading up 3.05%. With a lack of European data on this week’s economic calendar, most of the volatility generated from UK news on the forthcoming Brexit referendum. So far, equities markets have generally been reacting positively to recent Brexit polling that suggests that the Remain campaign remains in the lead.

Price action for the CAC 40 is now trading above a key value of (previous) resistance at 4,350. This bullish breakout has effectively ended 13 days of consolidation for the Index. While it is still to be determined whether today’s breakout constitutes a new trend, or simply a retracement, bullish traders may begin looking for the CAC 40 to move towards higher highs. Areas of resistance may include a 61.8% Fibonacci retracement found at 4,469.85, and the April 2016 high at 4,616.50. A move to this value would be significant, as it would further make the technical case that the yearly low is potentially in place at 3,890.50.

Alternatively, if prices break back inside of the range, it would suggest that this morning’s move is a retracement in a broader downtrend. In this scenario, traders may look for prices to test the range low at 4,244.50. A breakout below this value of support would suggest a resumption of the CAC 40’s downtrend, with traders looking for prices to challenge the low at 3,890.50.

CAC 40 Advances Higher as Brexit Fears Ease

Find out real time sentiment data with the DailyFX’s sentiment page.

Sentiment data for the CAC 40 (Ticker: FRA40) continues to decline as prices advance. SSI (speculative sentiment index) now stands at +1.16, which is down from the last reported reading of +1.43. If SSI flips negative, it may suggest further advances in price for the CAC 40. Alternatively, if the CAC 40 begins to decline through values of support, traders should look for SSI to move back towards positive extremes.

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

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

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.