Two trades to watch: CAC, Gold

CAC rises after Macron leads the polls

CAC is rising along with European peers despite Putin firing a warning shot to allies by test-firing an intercontinental ballistic missile with nuclear capabilities.

Macron performed well versus far-right nationalist Marine Le Pen in the French election debate ahead of Sunday’s vote.

Following the debate well, known pollster Elabe revealed that 59% of viewers were more convinced by Macron.

Le Pen has fallen behind Macron in the polls, but millions of voters remain undecided.

Eurozone inflation data is due to reaffirm the preliminary 7.5% reading for March, and ECB’s Lagarde will speak later.

Learn more about the CAC

Where next for the CAC?

The CAC has rebounded off 6415, a key support, rising above the 50 SMA, which, combined with the move higher in the RSI, keeps buyers optimistic about further gains.

The falling trendline dating back to the start of the year presents itself as near-term resistance ahead of 6755, the April high. A move above here will expose the 100 sma at 6835. A move above here will create a higher high.

On the downside, near-term support can be seen at 6570 the 50 sma. A move below 6400 could create a lower low and see sellers gain traction.

Gold awaits Fed Powell

Gold rose 0.4% in the previous session after a weaker USD and the latest Russia war developments boosted the precious metal.

Today, gold is falling as treasury yields are rising again, and attention turns to a speech by Fed Powell later today.

The market is pricing in an 83% probability of a 0.5% rate hike by the Fed at the FOMC on May 17^th.

A hawkish tone from Powell could lift this towards 100%, boosting the USD and pulling non-yielding gold lower.

However, the moderate rise in core inflation in the March CPI reading could keep Powell from any big commitments, which would support further upside for Gold.

Learn more about trading gold

Where next for Gold?

Gold has traded within a rising channel since the start of the month. More recently, the price broke out to the downside before finding support on the 100 SMA on the 4-hour chart.

The price attempted to rebound but struggled to break above the rising trendline support turned resistance.

Gold currently trade caught between the 100 SMA on the downside and the 50 sma on the upside, so traders might look for a break-out trade following Fed Powell’s speech.

A hawkish-sounding Powell could see sellers push below the 100 SMA at 1944, opening the door to support at 1916. A move below here could accelerate the selloff to the 1900 round number.

Meanwhile, a less hawkish-sounding Powell could boost Gold bulls above the 50 SMA at 1965 towards 1982 before bringing 2000 the psychological level into play.

How to trade with City Index

Follow these easy steps to start trading with City Index today:

Open a City Index account, or log-in if you’re already a customer.
Search for the market you want to trade in our award-winning platform.
Choose your position and size, and your stop and limit levels
Place the trade.

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.