• FxWirePro: EUR/USD neutral in the near-term, scope for downward resumption

    Source: FxWire Pro - Technicals / 08 May 2017 10:31:28   America/New_York

    • The EUR/USD declined on Monday as euro pulled back from highs touched after pro-European centrist Emmanuel Macron's emphatic but well-flagged victory in France's presidential election as investors' focus shifted from politics to monetary policy.
       
    • Political risks that have dominated European markets in a year packed with elections seen receding, the European Central Bank is expected to have more room to tighten policy as the euro zone economic recovery gathers pace.
       
    • The pair sharply declined having jumped to hit daily high at $1.1022 when opinion polls signalled the scale of Macron's victory over anti-euro nationalist Marine Le Pen.
       
    • Currently, the currency pair is trading at 1.0929 levels, it is set to decline further towards 1.0880 and later 1.0850 levels in the short term.
       
    • To the upside, the strong resistance can be seen at 1.1000, a break above this level would take the pair towards next resistance level at 1.1045 levels.
       
    • To the downside immediate support can be seen at 1.0929, a break below this level will open the door towards next level at 1.0884.

      Resistance Levels

      R1: 1.0978 (50 % Retracement level)

      R2: 1.1000 (Psychological levels)

      R3: 1.1045 (Dec 16th high)

      Support Levels

      S1: 1.0929 (38.2 % Retracement level)

      S2: 1.0884 (23.6 % Retracement level)

      S3: 1.0849 (April 27th lows)
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