EUR/USD: bears unable to break below 1.0500

Currently, EUR/USD is trading at 1.0571, up 0.35% on the day, having posted a daily high at 1.0584 and low at 1.0511.

EUR/USD has caught a bid in an otherwise consolidated tone that is surrounding the dollar currently with a better offered bias for the start of the year vrs a pro dollar backdrop for the outlook in the near to medium term under a Trump presidency.

The euro bulls are trading on fragile grounds in respect to the French elections that are due later in the year with La Pen's proposed policies to take France out of the euro by reintroducing the French Franc's peg.

Meanwhile, analysts at Commerzbank are not turning bearish too soon, "We await a close below the 1.0372/40 lows from mid December 2016 to trigger another leg lower." Below 1.0340, analysts explained the dollar will target parity and the 78.6% retracement at 0.9900 of the move 2000 to 2008. "Above the downtrend would see a deeper recovery to the 1.0700/07 recent spike high and the 38./2% retracement."

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EUR/USD levels

Current price is 1.0571, with resistance ahead at 1.0584 (Daily High), 1.0596 (Daily Classic R1), 1.0599 (YTD High), 1.0599 (Weekly High) and 1.0623 (Yesterday's High). Next support to the downside can be found at 1.0561 (Daily Classic PP), 1.0545 (Hourly 20 EMA), 1.0529 (Daily Open), 1.0525 (Yesterday's Low) and 1.0511 (Daily 20 SMA).