Optimism in the markets after the elections in France: the CAC jumps by 3%.
The first round of presidential elections in France ended yesterday in line with early predictions.
The center-left party candidate Emmanuel Makron and candidate of the right-wing National Front party rose to the second round in the May 7 elections.
The European stock exchanges react with gains in opening the trade and the French CAC index jumps by 3%.
The Asian stock exchanges are trading in a mixed trend with a tendency to rise.
In general, elections in France are not considered to have a significant impact on the markets, but this time they were perceived as a fateful event that could determine the continued existence of the EU.
On the daily chart we can see that last week the pair once again came close to a resistance area. around the level of 1.3530.
It was the fourth time since last November that this resistance kept the pair below it.
Our tendency is to sell, to do so we will go to a lower time frame.
On the one hour chart we marked an intra-day support line, around the level of 1.3450.
If the pair will break and closed below this level we can try and enter with a PUT trade.