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
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/FFMy5O9YoY
  • 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/zEEUHZBx7g https://t.co/jZHcyAZ5SU
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
CAC 40 Rises on Industrial Production Data

CAC 40 Rises on Industrial Production Data

Walker England, Forex Trading Instructor

Talking Points

  • CAC 40 stocks trade higher after German Industrial Production numbers beat expectations
  • CAC 40 prices continue to consolidate in a daily triangle; resistance ahead at 4,515
  • If you are looking for more trading ideas for equities markets, check out our Trading Guides

The CAC 40 has surged higher this morning and is trading up 1.33% on the day. So far European shares have reacted positively to, German Industrial Production numbers (MoM) (APR) beating expectations at .8%. As well, traders are still reacting to commentary given yesterday by Federal Reserve Chair Janet Yellen. With the likelihood of a potential rate hike for June diminishing, equities markets may be poised to rally further.

CAC 40 Daily Chart

CAC 40 Rises on Industrial Production Data

(Created using Marketscope 2.0 Charts)

Technically, the CAC 40 has continued to rally after finding support near 4,400. In order for this rally to continue however, prices must pass through several critical points of resistance. This includes a downward sloping trend line, which forms near 4,515. In the event of a breakout here, Junes standing high at 4,538 continues to act as the next major barrier for the Index. In the event that prices turn at trendline resistance, it suggests that prices may be trading in a consolidating triangle. This opens the CAC 40 up to decline back to values of support. This includes the previously mentioned support at 4,400, as well as triangle support near 4,300.

CAC 40 Rises on Industrial Production Data

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

SSI (speculative sentiment index) for the CAC 40 (Ticker: FRA40) has moved to an extreme, and is reading at +2.20. SSI is a contrarian indicator, and with 69% of open interest long, it suggests that prices may continue to trade lower. Alternatively, in the event of a bullish breakout, SSI would be expected to flip net negative as prices advance.

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