Video

#SaxoStrats
Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Medium term
/
Buy
Trade view / 05 January 2018 at 14:40 GMT

CAC 40 maintains upward momentum

Director / PIA-First Limited
United Kingdom
Instrument: FRA40.I
Price target: 5700
Market price: 5456
Background

The monthly chart highlights the reaction higher (August 2017) from the reverse trendline. A deeper correction towards the 78.60 Fibonacci retracement looks likely.

The weekly chart highlights the reaction from the upward trending support line, similar to the August reaction; confirmation of a bullish outside week should alert buyers.

The daily picture has also turned bullish after prices broke above the Ichimoku cloud and with price action posting a new seven-week high, the next leg higher may have already begun.

A break above 5,536 will see prices extend to levels not seen since January 2008.

Parameters

Entry: buy FRA40.i at current levels and on a dip to 5m400.

Stop: a break below 5,250.

Target: 5,700.

Time horizon: three to six weeks.

Monthly (reaction from reverse trendline):
c1

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Source: Saxo Bank 

Weekly:
c2
Source: Saxo Bank 

Daily:
c3
Source: Saxo Bank  

— Edited by Michael McKenna

Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here

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