EUR/USD better bid above 1.0600, all eyes on French election

The recovery in EUR/USD ran out of legs near 1.0625 in the Asian trades, but the bulls managed to keep the 1.06 handle heading into a holiday-quiet session ahead.

The major met fresh supply over the last hours after the selling interest behind the greenback waned amid a recovery in risk sentiment. Upbeat Chinese macro news combined with reports of US and China ties improving in a bid to overcome tensions over the Korean Peninsula brought relief to the markets.

The US dollar was broadly sold-off on Friday, following Trump’s jawboning and dismal US retail sales and CPI data, both of which disappointed markets. Meanwhile, the looming geo-political tensions continue to underpin the sentiment around the funding currency EUR.

Also, the EUR/USD pair benefits amid latest French election poll results, which continue to show Macro in the lead versus its rival Le Pen. A Le Pen win in the French presidential election would imply France’s exit from the EU, which is seen as EUR negative.

Looking ahead, it’s a Big week for the common currency, with the first round of the French presidential election on the cards, outcome of which will drive the sentiment around the Euro ahead of the second round scheduled on April 23rd.  It’s a close call between Emmanuel Macron and far-right Nationalist Party leader Marine Le Pen.

In the meantime, macro news from the Eurozone and US will drive the markets, with the Eurozone final CPI and manufacturing PMI reports slated for release in the week ahead.

EUR/USD Technical Levels

Technical resistances for the pair are aligned at 1.0650 (psychological levels), 1.0687/90 (Apr 6 & 5 high) and finally 1.0715 (March 13 high). On the flip side, the spot finds next support at 1.00603/00 (daily low/ key support), a break below that level could open the door to 1.0568 (multi-month lows) and 1.0500 (key support).

15M Bullish Overbought Expanding
1H Strongly Bearish Neutral Expanding
4H Bearish Neutral Low
1D Bearish Neutral Low
1W Bearish Neutral Low


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.2050 amid upbeat EZ PMIs, USD decline

EUR/USD is trading above 1.2050 after upbeat Eurozone Preliminary PMIs. The US dollar remains heavily offered across the board amid a mixed market mood, in the wake of Biden's plan for a tax hike. US PMIs awaited. 


GBP/USD holds gains below 1.3900 amid upbeat UK data

GBP/USD is consolidating gains below 1.3900, as the US dollar resumes decline after Biden's tax hike plan fuelled rally fades. The UK Retail Sales and PMIs beat expectations, offering support to the pound. 


Bitcoin, Ethereum and XRP plummet, breaching critical support levels

Bitcoin price has dropped 12.7% since yesterday and shows no signs of stopping. Ethereum price follows the pioneer crypto’s lead and might retest $2,000 again. Unlike BTC or ETH, XRP price shows signs of recovery as long as it stays above a critical demand zone.

Read more

XAU/USD eases from tops, downside remains cushioned

Gold struggled to capitalize on its intraday positive move to the $1,790 region. A modest bounce in the equity markets, US bond yields exerted some pressure. The prevalent USD selling bias should help limit the downside for the commodity.

Gold News

Bionano Genomics Inc runs into technical resistance, put options may work here

BNGO shares have continued to suffer post the retail meme crowd moving on. BNGO shares bounce from lows as DeMark buy signal flashes on Monday. BNGO shares trend up to resistance at 100 day moving average.

Read more