The EUR/USD pair printed a fresh daily low at 1.0684 (marginally below previous low) and currently is hovering around 1.0695. During the last hours it has been moving in a range between 1.0710 and 1.0684, consolidating modest losses for the day.
The pair and markets overall are on a consolidation mode, ahead of the weekend. No major position changes are taking place in EUR ahead of the French elections. The latest poll (IFOP) showed Macron leading (24.5%) followed closely by Le Pen (22.5) and Fillon 19.5%. On the second round Macron (60%) surpasses Le Pen (39.5%).
PMI’s and other economic reports from Eurozone and the US did not impact on markets. Neither did yesterday’s terrorist attack in Paris.
The intra-day bias favors the downside but price action remains significantly limited on Friday. If the pair breaks above 1.0710 (20-hour moving average) the euro could gain momentum. The next resistance could be seen at 1.0735/40 (daily high) and 1.0770.
On the downside, under 1.0680 the bearish pressure could increase. The area around 1.0640 (uptrend line from April lows) is likely to offer support; a break lower would point to an extensions of the decline.