EUR/USD Forecast: breaking higher, eyeing February's peak at 1.0828

Valeria Bednarik FXStreet

The common currency resumed its advance at the beginning of the Asian session and now flirts with the 1.0800 level against the greenback, boosted by the outcome of the first French presidential debate. According to polls, the former minister of economy, Emmanuel Macron was the most convincing candidate, while Marine Le Pen was under fire from all of its rivals, accused of dividing the French society.

There were no macroeconomic news in the EU during the European morning, although an EcoFin meeting is going on. Later today, the US docket will also remain light, with a couple of Fed's officers speeches taking center stage.

The EUR/USD pair trades a couple of pips shy of the 1.0800 figure, strongly bullish according to technical readings, and facing a strong resistance at 1.0820, the 50% retracement of the post-US election slide. Ever since plunging to 1.0340 at the beginning of the year, the pair attempted to break the level once, early February, peaking at 1.0828 before giving back some 300 pips.

In the 4 hours chart, the 20 SMA has continued advancing below the current level, now providing a dynamic support around 1.0750, whilst technical indicators turned sharply higher within positive territory, supporting further gains. An upward extension beyond 1.0830 should see the pair extending up to the 1.0860/70 region, ahead of the next macroeconomic trigger.

View live chart of the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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