forex FTSE100 & CAC40 Price Chart Forecasts: Indices Face Resistance

[Anzo Lim 0]

Major Indices have enjoyed a two-fold tailwind from warming US-China trade ties and dovish central bank policy which has allowed them to post gains in September thus far. As it stands, the fundamental landscape lies largely with Wednesday’s FOMC meeting at which the Federal Reserve is expected to cut the Federal Funds rate by 25 basis points. With the FTSE 100 and CAC 40 trading slightly beneath resistance, will they require a fundamental catalyst to break above or drive higher in the coming days regardless?

 

Either way, the FTSE 100 has a perilous path ahead. Continued Brexit uncertainty will likely divert some attention away from monetary policy matters and could keep the Index beneath resistance at 7,367 until loose-ends are tied. The Index could encounter subsequent resistance at the ascending trendline around 7,475 and 7,570.

 

Unlike the FTSE, the CAC 40 enjoys a relatively stable domestic backdrop. To that end, the French equity Index has enjoyed a steeper climb than its British counterpart and rests slightly beneath recent highs at 5,672. The level will look to resist a continuation higher. If surpassed, the CAC 40 could target levels not seen since 2007 when the Index traded above 6,000.

 

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