The EUR/USD pair showed significant activity at the start of the third quarter of 2024, marked by an upward gap of 0.29%, coinciding with the snap parliamentary elections in France.

Initially, this move suggested a potential breakout, breaching both the two-week resistance level and the 200-period EMA on the 4-hour chart. However, the bullish momentum proved unstable, and EUR/USD failed to sustain above 1.07760, leading to a sharp decline.

A fundamental review of the EUR/USD pair by Traders Union technical analyst Sholanke Dele.

The recent price reversal amid political upheavals in France indicates bearish sentiments toward the euro. Concerns about the possibility of opposition alliances gaining a majority in parliament led to a sell-off in French bonds, reflecting increased political risk. Coupled with the widening spread between French and German government borrowing costs, this highlights market unease.

The release of key data for the eurozone, including core inflation (year-on-year) and unemployment rates, is expected to impact trading at the start of the European session, according to Traders Union. These figures are crucial ahead of a speech by ECB President Christine Lagarde, which coincides with a much-anticipated address by Fed Chairman Jerome Powell.