Global macro overview for 24/04/2017:
The results of the first round of the French Presidential Elections indicate a split win. The centrist Macron had polled around 24% with both National Front leader Le Pen at 21%. This two candidates will move ahead to the second round run-off due to be held on Sunday, May 7th. Socialist Party candidate Hamon quickly conceded defeat and endorsed Macron for the second round. Fillon also conceded within an hour of polls closing and backed Macron against Le Pen.In conclusion, two opposite political points of view will fight for the French presidency in two weeks. The win of Marcon is Euro positive (risk-on), the win of LePen is Euro negative (risk-off).
Let's now take a look at the EUR/USD technical picture at the H4 timeframe. The market gapped up to the level of 1.0918, but now is moving lower slowly.The Friday close at the level of 1.0730 might be tested again by the end of the week. The next support is seen at the level of 1.0777, and the next resistance is the gap high at the level of 1.0918. The bearish divergence between the price and the momentum oscillator supports the bearish bias.
