EUR/USD After the French Election

The EUR/USD pair opened with a gap again in the opening seconds of the trading session as traders and investors saw a new opportunity to go long based on the results of the French elections. The elected President is Emmanuel Macron with 66.1% of the votes.

The initial reaction in the EUR/USD was a sharp appreciation to a high of 1.1020, highest since the Presidential elections in the United States on Nov 9.

What's surprising for most market participants is that the positive reaction in the Euro did not last long. The effect lasted just a few hours before the pair started to depreciate. EUR/USD is now 1.0928 and it looks like the momentum has been lost.

What's needed now is fresh news such as weak US data or strong EU data in order for the pair to continue climbing above 1.10.

Chart: EUR/USD H4