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CAC 40 Extends Gains on NFP Data

CAC 40 Extends Gains on NFP Data

Walker England, Forex Trading Instructor


Talking Points

The CAC 40 is trading higher for the first day this week, and is currently up +1.33% on the session. European Indices have rallied as a whole, as US NFP figures beat expectations this morning with a print of 287k. Currently the CAC 40 is trading off of its daily high, which resides at 4,210.80. If prices decline further, traders should continue to monitor the R4 pivot at 4,150.30. A move below this value would suggest a change in market momentum, and open the CAC 40 to further price declines.

CAC 40, 30 Minute Chart with Pivots

(Created using Marketscope 2.0 Charts)

In the event of a bearish price reversal, traders may look for the CAC 40 to trade back inside of today’s trading range. Today’s range is depicted above, and begins as the R3 pivot at 4,128.86. A move to this value would be significant, as it would signal a resumption of the CAC 40’s current down trend. In this bearish scenario, traders may look for prices to test values of support. This includes the S3 pivot at 4,085.14, and the S4 pivot at 4,063.28.

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

Sentiment for the CAC 40 (Ticker: FRA40) remains extreme with SSI (speculative sentiment index) reading at +3.35. While this number remains positive, it should be noted SSI has declined from Wednesday’s reading of +4.57. With 77% of positioning long, SSI still suggests that the Index may continue to decline. Alternatively, if the CAC 40 continues to rally into next week’s trading sessions, traders may look for SSI to decline further away from its current extremes.

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