EUR/USD jumped higher on the favorable results of the French elections. PMI and GDP data stand out in the first week of May, in the run up to the second round of the French elections. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.

Centrist Emmanuel Macron topped the first round of the French elections and markets cheered. Macron is expected beat extremist Le Pen in the second round. His probable election is a sigh of relief for the European Union. ECB President Mario Draghi took the euro for a ride. He started off with optimism, talking about better growth and diminishing downside risks. Yet after sending the euro higher, he showed more caution on inflation and said there was no discussion on an exit strategy. This sent EUR/USD back down. The common currency got a boost from inflation data. Core CPI s up 1.2%, the highest since 2013. In the US, Trump completes his first 100 days in office with a mixed dollar.

Updates:

EUR/USD daily chart with support and resistance lines on it. Click to enlarge:

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