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