EUR/USD reversal taking place Post-French elections
During the presidential elections in France, speculation about Macron's victory lead to a large rally in the Euro, leading to sentiment in the market turning short-term bullish in regards towards the Euro's future prices. Post-elections, after Macron won by a significant margin, prices may have begun a decline, possibly completely reversing the previous gains in the Euro within a week or two. A large trend line from early December '16 was never breached, so the Euro never rode that line to new near-term highs. Also, it never breached the 76.8% area of retracement, however, the Euro did come close. Now that some bearish signs such as: a large bearish candlestick , lower part of a channel weakening, faded breakout of a rising wedge (rising wedges tend to lead to further downside potential), return to the significant 61.8% retracement level (area where reversals most often take place), and the rejection from nearby to a trend line that has already lasted several months (Dec. '16). None of this is proof of anything happening, it is merely the concept of 'multiple concepts converging in an area,' and all that means is there are higher odds of this occurring.
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