The EURUSD pair is turning increasingly bullish ahead of the weekend’s Federal election in Germany. Yesterday, the euro regained bullish momentum after Wednesday’s steep decline, reversing sharply from its monthly pivot point, at 1.1884, hitting 1.1964.
In early Asian trading, the pair found dip buying demand as it moved back towards its weekly pivot point, at 1.1938, with price-action now testing the key 1.1957 resistance level.
The euro faces a major risk-event over the weekend, if the German election result is closer than most analysts predict. A larger than expected majority win by Angel Merkel should be euro supportive on Monday, whilst a closer than expected result should be seen as euro negative.
Key intraday resistance for the EURUSD above the 1.1957 level is seen at 1.1980 and 1.1999. Further resistance is located at 1.2031, 1.2038 and 1.2069.
To the downside, the weekly pivot point is found at 1.1938, whilst the daily pivot point is found at 1.1928.
Below the daily pivot point, yesterday’s break-out resistance area becomes support, at 1.1915, with the 1.1884 level once again acts as critical support.
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