'Both Le Pen and Melenchon represent a risk for markets, but Melenchon would be more disruptive for the French economy than Le Pen.' – Frederic Leroux, Carmignac Gestion (based on Bloomberg)
On Friday morning the common European currency against the US Dollar traded once more below the weekly R2, which is located at the 1.0729 level. The reason for that is the fact that the resistance put up by the weekly R3 at 1.0780 held its ground on Thursday. It is most likely that large fluctuations in the currency pair would not occur during today's trading session, as the French presidential elections will be held on Sunday. These elections are the main focus now for Euro traders, and the results are sure to cause a fundamental shift in the currency pricing.
SWFX traders remain bearish, as 54% of open positions are short. In addition, 52% of trader set up orders are to sell the Euro.