CAC40 Forecast Today 20/9: Powers Higher (Video+Chart)
Date
9/20/2024 4:46:30 AM
(MENAFN- Daily Forex)
The Parisian index skyrocketed during the trading session slamming into the 7600 euro level but perhaps more importantly the 200 day EMA. That being said I do see a lot of noise between here and 7700 and therefore I'm a bit skeptical or maybe a better word would just be cautious at this point in time. Yes, they clearly have momentum to the upside in this index, but you can also see where this might end up being somewhat of a perfect area to start shorting again at the first signs of trouble.
There is a little pocket of potential resistance going from the 7,500 euro level all the way up to the 7,700 euro level. The 7,700 euro level will be crucial for bulls to watch closely.
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The 200 day EMA of course sitting there adds a little bit of credence to it as well. And with that being said, if you zoom out to the weekly chart, you can see this is an area that's been very important multiple times. I think at this point, the CAC is very difficult to trade because of this range. If we do, then you can start to have a little bit more substantial conversation as to which direction we're going.
On a daily close above the 7,700 euro level, I think you do see buyers jumping in and pushing towards the 8,200 euro level pretty quickly. On the other hand, if we see signs of exhaustion here, that might be a sign that more trouble is coming for Paris, and by extension probably several other indices around the world. The Federal Reserve cutting interest rates by 50 basis points has turbocharged risk appetite in the short term, but that generally is a bad sign, so we'll have to see how that plays out. Keep your position size reasonable and pay attention to this 200 euro zone, as it is obviously very important at this point in time.
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