EUR/USD has sharply corrected its drive by way of 1.09 yesterday to briefly commerce underneath the 1.08 stage earlier than climbing marginally again above the determine. Economists at Scotiabank anticipate the pair to increase its decline.
Odds are the EUR/USD gaps larger on the Monday open
“Sunday’s French presidential elections are the subsequent key danger on the horizon for the EUR, however with odds rising that Macron defeats Le Pen, odds are the EUR gaps larger on the Monday open; solely modest positive aspects ought to be anticipated, nonetheless, as Macron’s lead has held up for the reason that first spherical.”
“Continued re-tests of the 1.08 zone all through this week level to the EUR’s downtrend extending beneath the determine with a watch for the subsequent psychological assist zone on the 1.07 mark, after intermediate assist at ~1.0760, adopted by the 2020 low of 1.0636.”
“Resistance is ~1.0850 and the 1.09 space.”