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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • Heads Up:🇺🇸 USD Monthly Budget Statement (NOV) due at 19:00 GMT (15min), Actual: N/A Expected: -$206.9b Previous: -$134.5b https://www.dailyfx.com/economic-calendar#2019-12-11
  • Heads Up:🇺🇸 USD Interest Rate on Excess Reserves (DEC 12) due at 19:00 GMT (15min), Actual: N/A Expected: 1.55% Previous: 1.55% https://www.dailyfx.com/economic-calendar#2019-12-11
  • Heads Up:🇺🇸 USD FOMC Rate Decision (Lower Bound) (DEC 11) due at 19:00 GMT (15min), Actual: N/A Expected: 1.50% Previous: 1.50% https://www.dailyfx.com/economic-calendar#2019-12-11
  • Heads Up:🇺🇸 USD FOMC Rate Decision (Upper Bound) (DEC 11) due at 19:00 GMT (15min), Actual: N/A Expected: 1.75% Previous: 1.75% https://www.dailyfx.com/economic-calendar#2019-12-11
  • Starting coverage of the #FOMC rate decision in a few minutes. I put my scenario table back in just for reference. If you are watching the event, come and join me: https://t.co/qiccUt9vbg https://t.co/25GHBJBW1k
  • US Treasury Yields Update: 2-year: 1.638% 3-Year: 1.652% 5-Year: 1.668% 7-Year: 1.754% 10-Year: 1.809% 30-Year: 2.226% $TNX
  • #Gold prices rebounding off key support zone- bearish invalidation at 1489 heading into FOMC. Get your $gld technical analysis from @MBForex here: https://t.co/R6wXmRjdvm $XAUUSD https://t.co/Uc1lbQGLHw
  • #Palladium pushes further into all-time highs following South Africa's energy crisis https://t.co/UdGWHDR3aW
  • best news of the day so far https://t.co/ctf0DcZxQJ
  • RT @federalreserve: WATCH LIVE TODAY: Press conference with #FOMC Chair Powell at 2:30 p.m. ET: https://t.co/sh1FXgYlwr https://t.co/FJa6T…
CAC 40 and European Equities Markets Pause Ahead of ECB

CAC 40 and European Equities Markets Pause Ahead of ECB

2017-04-26 12:16:00
Walker England, Forex Trading Instructor
Share:

Talking Points:

  • CAC 40 and European Equities Markets Await the ECB
  • Daily Resistance May be Considered at 5,284.30
  • Looking for additional trade ideas for equities markets? Read our 2017 Market Forecast

The CAC 40 has been quiet for the last two trading sessions, after the Index initially traded to new 2017 highs to start this weeks trading. This has been a recurring theme around European markets, as international equities markets await Thursday’s ECB (European Central Bank) rate decision. Expectations are set to leave rates flat at an effective 0.00%, however this event is likely to produce volatility in markets.

Traders following the CAC 40 should note that the Index is currently trading down -0.12% for Wednesdays trading. Top leaders for the session include Kering (+8.70%) and Vivendi (+1.87%). Top Losers for the Index include both ArcelorMittal (-1.80%) and BNP Paribas (-1.76%).

CAC 40, Daily Chart with 10 Day EMA

CAC 40 and European Equities Markets Pause Ahead of ECB

(Created Using IG Charts)

Technically, the CAC 40 has backed off from its standing 2017 high at 5,362.30 to now trade back below a value of previous technical resistance. 5,284.30 is represented graphically as the April 2015 high, and a daily close below this point may at least temporarily put the ongoing CAC 40 uptrend into question. If prices continue to decline, traders should next look for the Index to challenge its 10 day EMA (exponential moving average), which is found at 5,173.56. Alternatively if the CAC 40 rallies later in the week, traders should first look for prices to close back above 5,284.30. In this bullish scenario, the April 2015 high would again be considered a value of support as trader target new yearly highs.

CAC 40 and European Equities Markets Pause Ahead of ECB

Want to learn more about trading with market sentiment? Get our Free guide here.

Traders tracking market sentiment should note that IG Client Sentiment (IGCS) for the CAC 40 (Ticker: France 40) remains at extremes. Currently IGCS stands at -3.67 with only 21.4% of traders net long the Index. When taken as a contrarian signal, this extreme negative value suggests that the CAC 40 may continue to trader higher. In the event that the CAC 40 declines in upcoming sessions, traders may look for sentiment totals to move away from its current extremes back towards more neutral values.

--- Written by Walker, Analyst for DailyFX.com

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

See Walker’s most recent articles at hisBio 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.