After EUR/USD Gapped up when Macron won the first round of French Presidential Elections, price consolidated into the following triangle:
EUR/USD Daily:
Now, as we head into NFP day, the Euro has rallied out of it.
The overnight US reports including Unemployment claims, showed a greater than expected fall (238K vs 244K). Factory Orders also gained less than market consensus (+0.2% vs +0.4%) to put a damper on the US Dollar. With the market expectation for NFP being a 194K rise, this can be seen as the market positioning itself early as traders get nervous about those high expectations being met.
Just remember that while NFP is big as always, it’s still all about the French Election and I’ve marked the EUR/USD chart as to the obvious fallout if things go to plan.
