Against the backdrop of the results of the first round of the presidential elections in France, where Emmanuel Macron, the centrist and supporter of the euro integration, is leading, the euro rose sharply at the opening of trading on Monday. The pair EUR/USD rose by 1.9% to the level of 1.0918, the maximum since November 2016. Nevertheless, during the Asian session and at the beginning of the European trading session, the EUR/USD pair is falling from the reached maximum, partially overlapping the formed gap.
The pair broke through the key resistance level 1.0800 (200-period moving average on the daily chart), slightly not reaching the resistance level 1.0950 (the upper border of the rising channel on the daily chart and the July lows).
However, the pair EUR/USD will not be able to update this week's highs reached at the level of 1.0918 this week. With a return below the level of 1.0800 will return and the downward dynamics for the EUR/USD. Medium-term growth should be considered only after fixing the pair EUR / USD above the level of 1.0950.
During the week the most important macroeconomic news on the eurozone will be published. On Thursday (11:45 GMT), the ECB's interest rate decision will be published in the eurozone. The modest growth rates of the economy remain, unemployment is still at high levels. Most likely, the European Central Bank will not change the extra soft monetary policy.
As the ECB leaders have repeatedly stated, "the recovery of the eurozone economy is still unstable," despite signs of improvement in the economic situation.
Later on Friday (09:00 GMT) preliminary data on inflation in the eurozone for April will be published. It is expected that annual inflation will grow slightly after an unexpectedly large drop in March and will be 1.8%. This is still below the target level of the European Central Bank.
Support levels: 1.0800, 1.0740, 1.0685, 1.0580, 1.0530, 1.0500, 1.0485
Resistance levels: 1.0905, 1.0950
