EUR/USD has sharply corrected its drive through 1.09 yesterday to briefly trade under the 1.08 level before climbing marginally back above the figure. Economists at Scotiabank expect the pair to extend its decline.

Odds are the EUR/USD gaps higher at the Monday open

“Sunday’s French presidential elections are the next key risk on the horizon for the EUR, but with odds rising that Macron defeats Le Pen, odds are the EUR gaps higher at the Monday open; only modest gains should be expected, however, as Macron’s lead has held up since the first round.”

“Continued re-tests of the 1.08 zone throughout this week point to the EUR’s downtrend extending below the figure with an eye for the next psychological support zone at the 1.07 mark, after intermediate support at ~1.0760, followed by the 2020 low of 1.0636.”

“Resistance is ~1.0850 and the 1.09 area.”