EUR/USD retreats

EUR/USD retreats to 1.0970 on Macron win

After gapping higher to fresh multi-month tops beyond the psychological 1.1000 handle, EUR/USD met some sellers and is now hovering over the 1.0970/60 band.

EUR/USD offered post-French elections

The ‘buy the rumour, sell the fact’ axiom seems to prevail so far in the pair ahead of the opening bell in Euroland, after centrist independent Emmanuel Macron won the second round of the French presidential elections 65%-35% over far-right candidate Marine Le Pen.

Spot opened the Asian session with a gap higher to the 1.1020/25 band, levels last traded in early November, although EUR-sellers have quickly turned up, prompting the initial optimism to fizzle out. Despite Macron performed better than initial estimates, the pair rapidly returned to pre-Payrolls levels around 1.0960, where it is now looking to build some decent support.

Later in the session, German Factory Orders are due ahead of the Sentix Index. Across the pond, the Fed’s Labor Market Conditions Index is expected along with speeches by St Louis Fed J.Bullard (2019 voter, centrist) and Cleveland Fed L.Mester (2018 voter, hawkish).

EUR/USD levels to watch

At the moment, the pair is retreating 0.07% at 1.0990 facing the next support at 1.0880 (low May 3) followed by 1.0850 (low Apr.27) and finally 1.0832 (200-day sma). On the upside, a break above 1.1020 (high May 8) would target 1.1300 (high Nov.9 2016).