EUR/USD: Short squeeze is underway – OCBC
|Outcome of the first round of French legislative election saw no major surprises, OCBC strategists Frances Cheung and Christopher Wong note.
EUR to face renewed pressures
“Initial projections from polling companies suggest that far right Rassemblement National (RN) party was projected to get 33% and 34.2% of the vote, left wing coalition to get between 28.5% and 29.6% of the vote and Macron’s centrist alliance to get between 21.5% and 22.4% of the vote.”
“Potentially, the Euro (EUR) may face renewed pressures. Markets are on the look-out on whether Marine Le Pen’s far right party gets an absolute majority in the National Assembly, to allow it to pass legislation more easily. Potentially this scenario can be more negative for EUR than a hung parliament outcome.”
“EUR/USD was last at 1.0750 levels. Bearish momentum on daily chart shows signs of fading while RSI rose. Risks skewed to the upside. Resistance at 1.0760 (21 DMA), 1.0780 (50 DMA), 1.0810 (38.2% fibo retracement of 2024 high to low, 100 DMA). Support at 1.0710, 1.0660/ 70 levels (recent low).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.