The EUR /USD pair declined on Monday as the single currency was pressured by nervousness over the upcoming French presidential election as investors took stock of polls showing a tightening race. Investors are closely fo…
The EUR /USD pair declined on Monday as the single currency was pressured by nervousness over the upcoming French presidential election as investors took stock of polls showing a tightening race.
Investors are closely following the campaign as one candidate far-right leader Marine Le Pen has promised a referendum on France's membership of the European Union if she wins, fuelling concerns of an unravelling of the bloc after Britain's vote to leave last year.
Polls have for weeks shown Le Pen and centrist Emmanuel Macron on track to top the first round of voting on April 23 and go through to the May 7 run-off. However, two less fancied candidates, Francois Fillon and Jean-Luc Melenchon held mass rallies on Sunday, making it an increasingly tight race.
The ongoing weakness is set to continue for this pair as the resistance level at 1.0664 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, the immediate resistance can be seen at 1.0613, a break above this level would expose the pair to next resistance level at 1.0664.
To the downside, immediate support can be seen at 1.0561, a break below at this level will open the door towards next level at 1.0500.
