The U.S. dollar advanced against all its major peers and traders profited from the renewed demand for dollars.
The euro weakened after investors have been reminded that the French election is one of the biggest risks this year with the prospect of the victory of Marine Le Pen fueling concerns that the European Union will collapse. France's far-right leader Le Pen unveiled a manifesto pledge on Monday in which she said that she would take the country out of the EU should she win.
Within this climate of increasing anti-globalism, there is not much that is positive and currencies become victims of these policies. The euro fell below 1.07 and we now expect further losses towards 1.0620.
Bearish momentum in the GBP/USD accelerated after the pound dropped below 1.24. We now see a next major support zone around 1.2260 provided that the short-term support at 1.2350 will be significantly broken.
With no major economic data on the docket, the price action will be determined by political developments and global risk appetite.
Here are our daily signal alerts:
EUR/USD
Long at 1.0760 SL 25 TP 15, 40
Short at 1.0690 SL 25 TP 30-40
GBP/USD
Long at 1.2516 SL 25 TP 20, 40
Short at 1.2426 SL 25 TP 20, 50
We wish you good trades and many pips!
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