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CAC 40 Forecast: Continues to Wait for Momentum

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • The CAC 40 hangs around the €7500 level, which is an area that is of course a large, round, psychologically significant figure, and of course an area that we have seen a lot of action at previously.
  • Furthermore, we also have the 50 Day EMA indicator, which of course is an indicator that a lot of people will be paying close attention to.
  • It is because of this that I think we have a situation where if we can break out to the upside, it will probably have a major influence on where we go next.
  • Furthermore, you need to keep in mind that Paris does not operate in a vacuum, as the Parisian index is heavily influenced by not only France, but also Germany and the rest of the European Union.

CAC 40 Forecast Today - 17/09: Waiting for Momentum (Chart)

With all of that being said, it’s probably worth noting that you will not only have to watch the CAC 40, but also the DAX, which of course is a major influence on risk appetite in the European Union. Furthermore, it’s probably worth noting that the CAC 40 is also heavily laden with luxury type brands, so it does tend to react more to the wealthier consumer than many of the others. While Germany is focus more on industrial exports, CAC traders are focused on Louis Vuitton, Peugeot, Hermés, etc. in other words, it is somewhat its own thing, but risk appetite obviously has its place in your analysis.

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Technical Analysis

As I alluded to earlier, if we can break above the 50 Day EMA, it’s likely that the market could go looking to the 200 Day EMA indicator, possibly even the €7700 level, which obviously has been significant resistance previously. On the other hand, if we were to pull back from here, we could see the market test the €7300 level, which is an area that a lot of people will be paying attention to due to the previous reaction to that handle. All things being equal, I think this is a market that remains somewhat positive, but most certainly confused in the short term.

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Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

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