As we had mentioned in our forecast yesterday, the EURUSD has managed to trade strongly over the past 24 hours and continues to trade near its range highs and it looks good for some more consolidation with a bullish bias during the course of the day. As we had mentioned, we believe that the pair has the capacity to go as far as 1.0800 but that could cap the range for now and if the oveall range continues, we could see the euro moving back to 1.05 in due course of time.
Euro to Take Some Rest
The euro has been well bid overnight as the French elections draw close and there have been debates between the main candidates in the election and so far, Macron has managed to win the debate as far as the opinion polls are concerned. The other candidate, Le Pen, is known as a euro critic and her leading the polls or winning the elections would place the euro in serious jeopardy. The fact that she is lagging is a good sign for the EURUSD and that is one of the reasons why it has managed to stay buoyant overnight.
Though the pair looks pretty strong and there have been numbers like 1.10 and 1.12 being thrown about, we do not have faith in those numbers unless and until 1.08 is broken cleanly and clearly. This is the region where the EURUSD pair has repeatedly failed and hence, unless the bulls push through this region, there isnt much chance of progress.
Looking ahead to today, there is no major news from the Eurozone or the US for the rest of the day and so we can safely expect a lot of consolidation in the EURUSD pair but with a bullish bias as the bulls wait for the next fundamental push.