Today we’d look at one of the major trading pairs, namely the EUR/USD. After sinking to untraditionally low for the pair levels at the beginning of 2017, scaring investors into expecting parity, the pair recently managed to recover a bit. It ricocheted from the 1.0570 support level to climb up and we expect to see it break resistance levels at least until 1.10.
In the past days we have seen indication that we might witness a trend reversal - the EUR/USD certainly has the potential to turn bullish by overcoming resistance on the 4H chart. In the short term watch out for the resistance levels at 1.07 and 1.0740. If these are passed, we can begin to hope for a bullish trend. Likewise, if the pair sticks to lower levels around 1.0570, then we might see it shrink back down, resuming its bearish movement. In general, if we stick to the pair’s usual pattern, as long as the level of 1.06 is overcome, we’re likely to see the EUR/USD recover and even reach 1.10 in the long term. Remember to keep an eye on all of your trades involving the EUR this week as elections are coming up in France this coming Sunday. The results from the elections have the potential to tear the European Union - and its currency - apart, if EU skeptic Marine Le Pen is elected.
