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
  • 🇦🇺 Balance of Trade (JUN) Actual: A$10.496B Expected: A$10.45B Previous: A$9.269B https://www.dailyfx.com/economic-calendar#2021-08-05
  • 🇦🇺 Balance of Trade (JUN) Actual: A$10.496B Expected: A$10.45B Previous: A$9.681B https://www.dailyfx.com/economic-calendar#2021-08-05
  • The Nasdaq 100 may continue outperforming Dow Jones futures ahead as fears about global growth continue weighing on the 10-year Treasury yield ahead of NFPs. What are the risks? Find out from @ddubrovskyFX here:https://t.co/kADmxIfyHt https://t.co/xZl7hTPoSI
  • Heads Up:🇦🇺 Balance of Trade (JUN) due at 01:30 GMT (15min) Expected: A$10.45B Previous: A$9.681B https://www.dailyfx.com/economic-calendar#2021-08-05
  • S&P 500 Falls on Weaker ADP Jobs Report, Hang Seng to Open Flat https://www.dailyfx.com/forex/market_alert/2021/08/05/SP-500-Falls-on-Weaker-ADP-Jobs-Report-Hang-Seng-to-Open-Flat-.html https://t.co/Pql6w44nPl
  • 🇵🇭 Inflation Rate YoY (JUL) Actual: 4% Expected: 3.9% Previous: 4.1% https://www.dailyfx.com/economic-calendar#2021-08-05
  • Heads Up:🇵🇭 Inflation Rate YoY (JUL) due at 01:00 GMT (15min) Expected: 3.9% Previous: 4.1% https://www.dailyfx.com/economic-calendar#2021-08-05
  • The Australian Dollar may face swelling selling pressure from souring risk appetite over the COVID-19 delta variant and escalating tension with China. Get your $AUD markt update from @ZabelinDimitri here:https://t.co/Vy81GwhvzP https://t.co/U5PgkYUot6
  • (ASEAN Tech) US Dollar Outlook Bearish: Thai Baht Still at Risk as SGD, PHP, IDR Outperform #USD $USDSGD $USDIDR $USDTHB $USDPHP https://www.dailyfx.com/forex/technical/article/special_report/2021/08/05/US-Dollar-Outlook-Bearish-Thai-Baht-Still-at-Risk-as-SGD-PHP-IDR-Outperform.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/hvFwh6eTTg
  • 🇯🇵 Foreign Bond Investment (31/JUL) Actual: ¥225.6B Previous: ¥-1083B https://www.dailyfx.com/economic-calendar#2021-08-04
CAC 40 Falls From Post-Election Highs

CAC 40 Falls From Post-Election Highs

Walker England, Forex Trading Instructor

Talking Points:

  • CAC 40 Falls From Highs Post Election
  • Sentiment Shifts From Extremes; IG Client Sentiment -1.39
  • Looking for additional trade ideas for equities markets? Read our 2017 Market Forecast

The CAC 40 is reversing lower this morning, after initially rallying to new highs on the conclusion of the final round of the 2017 French presidential election. Yesterday’s election saw Emmanuel Macron defeat Marine Le Pen. With this news now being priced into the market, CAC 40traders will next look to ECB President Draghi’s speech on Wednesday to provide direction for European shares. So far for Monday’s trading, the CAC 40 is down -0.83%. Leaders for the session include Unibail-Rodamco (1.79%) and Carrefour (+0.51%). Top Losers for today’s trading include both Schneider Electric(-4.77%) and LafarageHolcim (-4.53%).

CAC 40, Daily Chart with 10 Day EMA

CAC 40 Falls From Post-Election Highs

(Created Using IG Charts)

Technically despite today’s decline in price, the CAC 40 remains in an uptrend. Currently the Index remains above its 10 day EMA (exponential moving average at 5,341.22 and its 200 day MVA (simple moving average) at 4,791.89. At present, the 10 day EMA may be considered as a value of support if the CAC 40 continues to trend higher. If the Index remains supported above 5,341.22 this week, traders may look for the CAC 40 to breakout to new 2017 highs above 5,498.90.

With prices moving lower to start trading this week, traders looking for a reversal in the CAC 40 should first look for prices to trade below 5,341.22. A breakout below the displayed 10 day EMA would suggest that new bearish momentum is returning to the market. In this bearish scenario, traders may look for the Index to trade back towards key technical lows. This includes the standing May low at 5,243.60 and then the April 24th low at 5,158.50.

CAC 40 Falls From Post-Election Highs

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

Sentiment figures for the CAC 40 (Ticker: France 40) have shifted significantly from last week’s extremes. IG Client Sentiment (IGCS) now reads at -1.39, with 41.9% of traders net-long the Index. This is a significant shift from last Thursday’s reading of -2.93. If the CAC 40 continues to decline, traders should look for sentiment to neutralize further and potentially flip to a positive reading. Alternatively if the CAC 40 finds support, sentiment is likely to shift back towards negative extremes on new higher highs.

--- 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