The Euro eased back to 1.0820 zone after opening with nearly two-hundred pips gap higher, boosted on anticipated win of presidential candidate Macron in the first round of French election.
The single currency hit fresh high of over five-month at 1.0916, on opening on Monday and briefly extended above key short-term barrier at 1.0905 (27 Mar high).
Strong bullish sentiment that has been established is expected to keep the pair supported in the near-term, as long as today’s gap remains unfilled.
Broken 200SMA is still acting as valid support at 1.0836, despite being dented overnight on extension to 1.0821 (session low), with fresh upside attempts to be expected while the latter support is holding.
The pair may hold in extended consolidation until markets fully digest recent news, but will remain bullishly aligned on positive sentiment.
Firmly bullish daily studies are also supportive for fresh attacks at 1.0916 peak and possible extension towards psychological 110.00 barrier which is sen as near-term target.
Conversely, firm break below 200SMA would weaken near-term structure and increase risk of filling today’s gap and return to neutrality zone of former 1.0700/77 congestion.
Res: 1.0876, 1.0916, 1.0950, 1.1000
Sup: 1.0836, 1.0819, 1.0777, 1.0752
