EURUSD Skyrockets In Active Trading

The EURUSD pair had a very active morning today as the pair moved from the low 1.0700s towards the 1.0750 region. Though a lot of traders were expecting to see some strong selling in this region, the pair has been able to overcome the selling in this region so far and trades comfortably above 1.0750 as of this writing. It will be interesting to see how the pair closes for the day and whether it does manage to hold on to its gains. A clear close above the 1.0750 region should be enough sign for the bulls to push the pair towards the yearly highs.

The European session has also been pretty active so far and has been pushing the euro further higher. It is not only the euro but the pound has also been making full use of this dollar weakness and has easily vaulted through 1.28 and is now threatening the strong resistance region near 1.2850. Amidst all this volatility, it is a surprise that the gold prices have not yet taken a cue to move higher.

It should be a matter of some concern that the EURUSD pair is skyrocketing in a month when the French elections are scheduled to take place and though all the opinion polls have suggested a loss for Le Pen, the experience over the past year has shown us that anything could happen during the elections and hence we would have expected the traders to be a bit conservative in their trading but so far, there has been no sign of that.

Looking ahead to the rest of the day, there is not much news from the Eurozone and the only matter of concern should be the speeches from Carney and the US Treasury Secretary which is likely to bring in some volatility depending on what they say.