The EUR/USD retraces but keeps its bullish trend

The EUR/USD has made a very good bearish retracement from the 200 day EMA around the 1.0770 level, which has taken it below the 1.0700 level. None the less, the MACD indicator over the daily chart is showing us that the bullish trend is still in place. If the pair continues falling, then it may reach the 1.0600 level, which has acted as a support in the past. Below the 1.0600 level, its next support could be the 1.0500 level, a very psychological zone where the pair has had difficulties in continuing lower. However, the Euro is very sensitive at the moment over the French presidential elections and it could show high volatility depending on the outcome of the voting. In the best case scenario for the Euro, it may even break above the 1.1200 level in the mid-term. In the worst case scenario, it may break below parity at the 1.0000 level. To the upside, the 1.0800 level may act as a resistance, but above that level, the most important resistance is the high that it made around the 1.0900 zone.