After the weekend, we see a continuation of the sentiment seen at the end of last week. Although Macron’s win in the second round of the French presidential election is a positive factor, lockdown fears in Asia have returned to the market and thus we may see risk-off sentiment.
Looking technically at the chart, EURUSD quotes continue to move within the downtrend. Last week, the horizontal resistance zone at the level of 1.0925 effectively stopped the gains, after which the downward impulse began. This morning, in turn, overcame the last local minima at 1.0760, which confirms the prevailing downtrend on the currency pair. Currently, we can observe a small demand reaction at the height of the 127.2% measure, which was determined on the basis of the last correction, but if it is exceeded, the discount may deepen towards the 161.8% coefficient at 1.0648.
EURUSD, H1 interval. Source: xStation5