Euro knocked back lower


The dollar and yen gained versus most other currencies, while the euro took a knock on the latest political machinations in France as the first round of the Presidential election on April 23 draws nearer. The euro was knocked back lower on news that French presidential candidate Juppe said that he would not replace scandal-embroiled Fillon. On Friday, EURUSD, rallying some 50 pips to a 17-day peak at 1.0640 after Yellen headlines hit the wires and has now tumbled back under 1.0600, logging an intra-day low at 1.0584 before finding a toehold. The bout of volatility shows how much interbank and speculative participants are trading off news relating to the upcoming French presidential election, the first round of which will take place on April 23. The Dutch election is next week, on March 15th (the same day the Fed announces policy).

The pair now faces further pressure, by breaking the 20 period MA, in the hourly chart. Its 4-hour RSI is bearish and sloping lower, while MACD remains in negative territory. Hence further weakness is possible to be noticed during the week, while the focus is on the ECB meeting (Thursday), which will also bring the updated set of staff projections and the anticipation for NFP on Friday.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our latest webinar and get analysis and trading ideas combined with better understanding on how markets work.

Click HERE to register the next webinar will start in:

Andria Pichidi

Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.