EUR/USD down to test 1.0700 post-PMIs, eyes on French election

The EUR/USD pair broke the Asian consolidation box to the upside and clinched fresh daily highs near 1.0740 in early Europe, before retreating towards 1.07 handle following the release of a slew of mixed Euro area manufacturing and services PMI reports.

The spot wiped-out gains and turned back to the red zone, as the bulls remained unmotivated by the region’s PMI readings heading into the key French election scheduled this Sunday.

Moreover, it appears that votes are shifting in favor of the anti-EU French presidential candidate Le Pen, as the French back her anti-terror stance, especially in the wake of last night’s terror attack.

Le Pen called for the French borders to be reinstated immediately and arrest all on the security list. A Le Pen win is EUR-negative as it implies France’s exit from the EU’s membership.

In the meantime, the pair looks forward to the US PMI reports and existing home sales data for fresh incentives, while the speech from FOMC member Kashkari will also grab some attention in the NA session.

EUR/USD Technical Levels

Technical resistances for the pair are aligned at 1.0777 (3-week tops), 1.0800 (round number) and finally 1.0827 (Mar 29 high). On the flip side, the spot finds next support at 1.0688 (classic S1/ Fib S2), a break below that level could open the door to 1.0666/63 (50 & 10-DMA) and 1.0650/47 (psychological levels/ 100-DMA).