EUR/USD recovered on France no confidence Vote. It hit a high of 1.04601 yesterday and is currently trading around 1.05124.
France is facing a major political crisis as Prime Minister Michel Barnier is set for a no-confidence vote, which could end his short tenure. His minority government struggles to maintain support due to a fragile coalition and budget proposals aimed at cutting €60 billion from the deficit. If Barnier is ousted, France could experience a long period of instability without a stable government. Analysts suggest that President Macron may need to consider resigning to restore political stability, as deeper issues in French politics make consensus difficult.Technical Analysis Overview
The pair remained below both short-term (34 and 55-4H EMA) and long-term (200-4H MA) moving averages.
Resistance and Support Levels
Resistance Levels: Near-term resistance is at 1.0550. A breakout above this could push the pair towards targets at 1.0600/1.0660/1.070/1.0760/$1.0835, and possibly 1.0900. Major bullish momentum is expected only if prices surpass 1.1000, which would open the door to 1.1070 and 1.1150.
Support Levels: Immediate support is at 1.0490. A drop below this could lead to further declines to 1.0435/1.0400/1.0370/1.0330/1.0240.
Indicator Insights
Indicator Insights (4-Hour Chart): The Commodity Channel Index (CCI) indicates a bullish trend, while the Average Directional Movement Index (ADX) suggests a neutral outlook.
Suggested Trading Strategy
Given the weak sentiment in technical indicators, a sensible strategy would be to sell on rallies around the 1.0550 mark, with a stop-loss at 1.0600 and a target price of 1.0435 for potential gains.
