EURUSD: Coming to a cross roads
The rally in EURUSD in response to the results of the first round of the French Presidential elections has seen price stall at the March high around 1.0909. Price has been correcting higher in a bullish channel and is now fast approaching a test of the bearish medium term channel resistance which will prove pivotal. A break above paves the way for a rotation higher toward the longer term bearish channel top. A retracement lower should find support at a retest of the rising short term channel low.
GBPUSD: Knocking on the door
The rally in GBPUSD in response to the shock announcement by UK PM May that an early general election will be held in June has seen price trade up to retest the broken post-Brexit low between 1.2770s – 1.2850. A break above this level should pave the way for a run up to deeper resistance at the 1.3440-1.3515 level while a retracement lower should find support at a retest of the broken bearish channel high.
USDJPY: Slipping and sliding
The sell off in USD has seen USDJPY trading in an orderly bearish channel over recent months. Having bounced off the channel low, the price is now retesting the underside of the last swing low around 110.60. A break above this level should pave the way for a rotation back up to test the bearish channel high while a reversal lower here should see a new low printed in the channel.
