CAC 40 Stalls Under Previous High
- CAC40 Stalls Under Yesterday’s High
- Traders Await FOMC Data to Provide Direction
- Looking for additional trade ideas for the equities market? Read Our 2017 Market Forecast
The CAC40 has stalled under yesterday’s high of 4,929.60, and is currently trading down -0.11% for the session. Top winners for the Index include Accor (+2.23%) and BNP Paribas (+1.36%). Losers for the day include Michelin (-2.30%) and Kering (-1.77%). While there is little European news due out later today, equities traders will be watching for this afternoon’s release of the US FOMC meeting minutes from December. This is scheduled for 19:00 GMT and may have the ability to swing the market.
CAC 40 Daily Trend & 200 MVA
(Created Using TradingView Charts)
Technically, the CAC40 remains bullish trading well above its 200 day MVA (simple moving average). If the current bull trend is to continue however, the Index will need to breakout above yesterday’s high of 4,929.60. In this bullish scenario, traders may look for the CAC40 to trade towards the December 2015 high of 4,642.10.
In the event that prices turn at current levels, traders may look for the CAC40 to trade back towards daily support. This includes last Friday’s low of 4,825.10. A move through this value would suggest a larger retracement is in play, which may expose other values of daily support which includes 4,804.70 and 4,746.50. A continued decline through these points would significantly shift the short term momentum of the market, which may allow the Index to trade back down towards the 200 day MVA at 4,457.32.
--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.