EUR/USD: Bulls take a break ahead of 1.10

The EUR/USD pair continued its uninterrupted rise during the NA session and reached its highest level since early November at 1.0986. The pair seems to have lost some momentum as the market thins out ahead of the Asian opening. At the moment, the pair is trading at 1.0983.

Investors seem to be taking advantage of the weak greenback environment to increase their long euro positions with the anticipation of a Macron victory in this weekend's final round of French presidential election. After showing some encouraging signs following the FOMC statement yesterday, the USD suffered heavy losses against its major rivals on Thursday as the US Dollar Index lost 0.65% on the day on its way to 98.60.

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According to the latest poll released by IFOP, pro-EU Macron is seen beating Le Pen to become the next president of France by 61% to 39%. Before investors turn their attention to the election, the nonfarm payroll numbers from the U.S. will be watched closely, as a positive reading could confirm a June rate hike, allowing the greenback to recover its losses. Additionally, participants will keep an eye on crude oil prices, which dropped nearly 5% on Thursday and weighed on other commodities as well. The euro could gather further strength against the USD if the equity indexes react negatively to weak commodity prices.

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Technical outlook

A break above 1.10 (psychological level) could open the door to 1.1070 (Nov. 8 high) ahead of 1.11 psychological level. To the downside, the initial support could be seen at 1.0875 (daily low) followed by 1.0800 (psychological level) and 1.0775 (200-DMA).

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