Right Wing politics appears to be good for the Euro with opening gaps against the rest majors Monday. Note elections in France saw Marie Le Pen’s far right National Rally headed for a slight majority suggesting French centered and anti-immigration politics, this appears to be inline with the growing strength of the right across Europe. That said at the end of the day the Euro will likely be influenced more by monetary policy rather than fiscal matters that are limited to individual countries.
Resistance
- 1.08163 – Intraday Consolidation Low
- 1.07775 – 50D Moving Average
- 1.07616 – Daily Consolidation Resistance
Support
- 1.07271 – Intraday Consolidation High
- 1.06854 – Intraday Lows
- 1.06494 – Low for May
EURUSD gapped higher at the courtesy of geopolitics. Chart wise however we have EURUSD testing its three week consolidation resistances with prices just under the 50D Moving Average. Intraday we have the stochastic indicator easing off overbought levels in the hour;y chart and are over brought in the 4H picture. Given the immediate resistances faced, our bias will be to look for shorts at current levels provided we start seeing long wicks in the hourly charts with stops above the 50D moving average.
