French Presidential Election Round 1 Aftermath

Upon opening bell, EUR skyrocketed to the moon, strengthening massively against all other currencies, after news broke thatΒ Emmanuel Macron and Marine Le Pen are through to the second and final round of the Elections.

I had a bullish inclination on the EUR/USD end of last week. Even though it was in the right direction in the end, I did not enter the trade because of the huge uncertainty of holding it over the weekend.
If I was wrong, the magnitude of losses due to this large gap would’ve caused some damage.
My opinion for now is not to touch any EUR pairs for these 2 weeks due to the Elections and any surprise outcome will not respect any technical or fundamental understanding.
The gap has already done its damage to accounts and chart patterns; give it time to settle down and reshape.

Trade safe and trade well!

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Trading Idea: EUR/AUD (Short)

H4


EUR/AUD is possibly forming the right shoulder of the H&S pattern.
If it is successful, this should take us all the way down to 1.38742 region.
Note that it has rejected nicely almost exactly at the same zone as the left shoulder.

H1


Going down another time frame lower, we can see that the upward momentum is increasing at a decreasing rate.
Looking top-heavy and possibly ready for a good reversal, especially from C-D-E.
Furthermore, it has rejected the top of the left shoulder region at least 5 times, which should be telling.