The 1.0906-10 area topside target

As everyone knows, the EURUSD has gapped on the back of the French election. No surprises and support being pushed Macron's way.

The price has moved to a high of 1.0899 - a nice round and natural resistance target (my chart started at 5 PM with my broker). In addition to it, the swing low from June 24th (Brexit low at 1.0910) and the swing high from March 2017 (at 1.0906), are other resistance levels for the pair now. Look for profit takers from weekend longs, with the potential for stops above. On a move above, the 1.09775 is the 50% of the move down from the May 2016 high to the Jan 2017 low. I would also expect sellers (traders) to lean against that area just because gaps tend to attract profit takers (the gifted horse in the mouth argument).

On the downside, the gap has taken the price above the 200 day MA at at 1.0832 (close above would be the first since early October today). The swing low from October 2016 comes in at 1.0849. The 38.2% of the move down from the May 2016 high comes in at 1.08276. Call the 1.0827-49 support now. Look for stops and more selling on a move below. The high on Thursday was 1.0777 (it was a double top). The high on Friday was at 1.0737.

Gaps are tricky as you tend to lose the hourly and 4-hour charts for trading clues. But in this case traders have the daily chart to provide risk defining levels and targets to guide the way.