The euro is complying with the tech levels...for now
EURUSD gave up a fair bit of ground as the euphoria wore off after the final French election results. The fact that it's remained above 1.0800 is a positive sign for now and traders are drawing the battle lines between 1.0820 and 1.0880.
EURUSD H4 chart
1.0830/20 was an area of support I touted last night if 1.0880 broke, and the natural reaction to 1.0880 breaking is that it's now resistance. It's been one of those levels that usually has a say in the price action and can be traced as far back as early 2015. It's a level where big events break it but when things settle down it asserts itself.
Moving forward, and as far as the elections as concerned, the market is likely to side with the polls that show Macron beating Le Pen in the second. If that happens we'll probably have another rally but I doubt it will be as big as this one. Although chances might be slimmer for Le Pen to win, don't discount seeing further event risk trading into the second round, and a relief rally after. Assuming Macron does win through, the next trade will be how the euro reacts to his policies etc, but that's likely to be minor trading unless he comes out with something strong and unexpected.
In the meantime, the euro will probably get back to trading everything else normally, so pin your levels on the charts and trade accordingly.
