What to expect on Financial Market through French Presidential Election?

April 20, 2017

Are You Ready For ‘Frexit’ – The EU’s Next Big Test?

What to expect on Financial Market through French Presidential Election?

This article is originally referred from Fortrade News

First “Brexit” now “Frexit”?

The first round of the 2017 French presidential election is set to be held on Sunday, 23 April, and if no majority is acquired by any of the candidates, there will be a second round which is planned for 7 May.

23 April marks exactly ten months since the Brexit vote and close to five months since Trump’s surprise victory in the U.S. presidential election. All eyes now shift to France as investors try to predict if another threat to Europe’s single market – in the form of Frexit (“French exit”) – is posed to further shake up financial markets.

France’s Far-right candidate, Marine Le Pen, who promised voters a referendum to take France out of the EU if elected, has been gaining a considerable momentum lately, and is predicted to gain enough votes to get through to the second round.

However, her main rival, Emmanuel Macron, a centrist, is seen by current polls as most likely to win the second round and become the next president of France.

Financial markets have signaled a victory by Marine Le Pen as negative, whereas a possible victory by Emmanuel Macron is seen to be positive.

Gold – Pivot Point: 1278.26 (61.8% Fib. R.)

If Negative:

Target 1: 1315.08 (76.4% Fib. R.)
Potential profit on 1 Lot: $3,682
Target 2: 1346.21 (88.6% Fib. R.)
Potential profit on 1 Lot: $6,795

If Positive:

Target 1: 1248.48 (50.0% Fib. R.)
Potential profit on 1 Lot: $2,978
Target 2: 1218.84 (38.2% Fib. R.)
Potential profit on 1 Lot: $5,942

EUR/USD – Current Level on 20/04/2017: 1.0736

If Negative:

Target 1: 1.04927 (Strong Support Level Resisted Last on 02/03/2017)
Potential profit on 1 Lot: $2,433
Target 2: 1.03422 (0.0% Fib. R.)
Potential profit on 1 Lot: $3,938

If Positive:

Target 1: 1.08278 (38.2% Fib. R.)
Potential profit on 1 Lot: $918
Target 2: 1.09773 (50.0% Fib. R.)
Potential profit on 1 Lot: $2,413

US Dollar Index – Pivot Point: 99.47 (38.2% Fib R)

If Negative:

Target 1: 101.10 (23.6% Fib. R.)
Potential profit on 1 Lot: $1,630
Target 2: 103.77 (0.0% Fib. R.)
Potential profit on 1 Lot: $4,300

If Positive:

Target 1: 98.12 (50.0% Fib. R.)
Potential profit on 1 Lot: $1,350
Target 2: 96.79 (61.8% Fib. R.)
Potential profit on 1 Lot: $2,680

Although no one can predict with certainty who will win the French presidential election, a rocky near-term future for financial markets is greatly anticipated. This could mean a significant increase in volatility and potential trading opportunities.

Have your trading positions prepared for the possible fallout if and when ‘Frexit’ comes to fruition.

Fortrade Official Website

Original Source: Fortrade News

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