EURUSD – Euro Stable Post Expected French Elections Results
Aayush Jindal
Key Highlights
The Euro opened a few pips higher towards 1.1020 against the US Dollar, but later corrected lower.
The EURUSD pair is currently trading near a major horizontal support area at 1.0950 on the 4-hours chart.
Today in China, the Foreign Exchange Reserves figure for April 2017 (MoM), released by the State Administration of Foreign Exchange posted ¥3.030T, a lot more than the forecast of ¥2.020T.
Today in the Euro Zone, the Sentix Investor Confidence Index (May 2017) will be released by the Sentix GmbH, which is forecasted to increase from the last reading of 23.9 to 25.0.
EURUSD Technical Analysis
The Euro traded positively against the US Dollar and opened towards 1.1020 as French elections had the expected results. The EURUSD pair is currently correcting lower and approaching the 1.0950-40 support.The pair after trading close to the 1.1021 level started correcting lower. It traded below the 23.6% Fib retracement level of the last wave from 1.0820 low to 1.1021 high.However, the pair is currently trading near a major horizontal support area at 1.0950 on the 4-hours chart. The mentioned support is also just above the 38.2% Fib retracement level of the last wave from 1.0820 low to 1.1021 high.So, the pair is likely to gain bids once again for a move back towards the 1.10 level. On the downside, a break of 1.0950 may call for further declines. The next major support could be near the 50% Fib retracement level of the last wave from 1.0820 low to 1.1021 high at 1.0920.There are also a couple of bullish trend lines waiting at 1.0910 and 1.0890 to provide support in the short term.
China’s Foreign Exchange Reserves
Recently in China, the Foreign Exchange Reserves figure for April 2017 was released by the State Administration of Foreign Exchange. The market was expecting the total amount of foreign currency held by a government for April 2017 to post ¥2.020T, compared with the previous month.The actual result was a bit better than the forecast, as the Foreign Exchange Reserves came in at ¥3.030T.Overall, the EURUSD pair is currently trading with a bullish bias as long as above 1.0900-20.
The pair after trading close to the 1.1021 level started correcting lower. It traded below the 23.6% Fib retracement level of the last wave from 1.0820 low to 1.1021 high.However, the pair is currently trading near a major horizontal support area at 1.0950 on the 4-hours chart. The mentioned support is also just above the 38.2% Fib retracement level of the last wave from 1.0820 low to 1.1021 high.So, the pair is likely to gain bids once again for a move back towards the 1.10 level. On the downside, a break of 1.0950 may call for further declines. The next major support could be near the 50% Fib retracement level of the last wave from 1.0820 low to 1.1021 high at 1.0920.There are also a couple of bullish trend lines waiting at 1.0910 and 1.0890 to provide support in the short term.