EUR/USD analysis: Back above the 20-WMA; holding on French election results
|EUR/USD Current price: 1.0710
The euro ended the week higher against the US dollar, but far from the highs. From a fundamental perspective, the opening and the first hours of Monday are likely to be defined by the results of the French Presidential election. If polls don’t fail, there won’t be panic. The worst case scenario for markets would be a second round between Le Pen and Melenchon; if that is the case, the euro could tumble sharply in the market, triggering risk aversion.
The EUR/USD pair posted the second weekly gain in a row and rose back above the 20-week moving average: a positive signal for the euro. The upside could continue toward 1.0800/50 where there is a strong resistance. A weekly close above 1.0830, would signal more gains for the euro. A surprise on Sunday, could send the pair sharply lower, to test key support levels. The first one is around 1.0550; below that area comes 1.0400 and then, the 2017 low at 1.0335/40.
Support levels:1.0675 1.0630 1.0600
Resistance levels: 1.0735 1.0775 1.0805
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