EUR/USD off 2017 tops, back around 1.0850

It is all about French elections and risk-on today. EUR/USD managed to gap higher to fresh 2017 peaks near 1.0920, although it has given away some ground to the current mid-1.0800s afterwards.

EUR/USD boosted by Macron win

The pair met a wave of buying interest after centrist candidate Emmanuel Macron obtained almost 24% of votes vs. far-right candidate Marine Le Pen’s 21.4% at French presidential election on Sunday.

Both candidates will meet again at the second round on May 7, with consensus expecting a clear victory of pro-EU candidate E.Macron.

Spot opened with a gap higher to fresh yearly tops around 1.0920 on Monday amidst a prevailing risk-on context in the global markets following the results from the French elections.

The upside momentum around EUR has fizzled out a tad ahead of the opening bell in Euroland, although the pair’s optimism stays intact for the time being.

In the data space, the German IFO is only due in the euro area, while the Chicago National Activity Index is expected across the pond along with the speech by Minneapolis Fed N.Kashkari (voter, dovish).

EUR/USD levels to watch

At the moment, the pair is gaining 1.12% at 1.0848 facing the next hurdle at 1.0905 (high Mar.27) followed by 1.0920 (2017 high Apr.24) and then 1.1000 (psychological handle). On the flip side, a breach of 1.0838 (200-day sma) would target 1.0821 (low Apr.24) en route to 1.0780 (high Apr.20).