The French voters choose novice centrist Macron and far right candidate Le Pen during the first round of the Presidential election in France, which took place on Sunday 23 April. None of the candidates reached the 50% threshold and hence a second round will occur with the two candidates on Sunday 7 May.
The EUR/USD reacted bullishly to the news, most likely due to the prospect of Macron winning the second round of the French Presidential elections. Macron is in favour of the EU and the Euro currency, which is exact opposite position of Le Pen. The EUR/USD broke above 1.09 and thereby changed the wave structure as a larger correction could be taking place.
The EUR/USD is building bullish momentum which could be part of a wave (purple).
The GBP/USD is building a bull flag chart pattern (red/blue lines). A break above it could see price challenge the next Fibonacci level.
The GBP/USD retracement has respected the 38.2% Fibonacci retracement level at 1.2750. A break below the 61.8% Fibonacci level invalidates wave 4 (purple) where a break above the bull flag (red) could see a wave 5 (purple) develop.
The USD/JPY broke above the bear flag chart pattern (dotted orange) and resistance trend line (dotted red). The bullish price action could still be part of larger bearish retracement (waves Y) of the larger time frames.
The USD/JPY bullish momentum could be part of a 5 wave (orange) within wave 3 (brown). The wave 4 (orange) remains valid as long as price stays above the 61.8% Fibonacci level of wave 4 (orange).
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