EUR/USD holds onto technical support in quiet overnight trading

Yesterday the break above the 50 day moving average in the EUR/USD did extend, as reported on here at the time. That upside break was all due to the really disappointing US Service sector ISM report. That fell back into contractionary territory below 50 and it was that which did for the dollar. Prior to that the 50 day moving average had been capping all previous attempts by the Euro to rise. That was in place yesterday at 1.0779 and the break above it led to a high at 1.0817. However, the Euro did not really drive home its relative advantage and the only reason for that can be uncertainty surrounding the looming French election. The EUR/USD later closed at 1.0786. Overnight it has traded in a tight range and held that 50 day moving average (now at 1.0781). The range seen has been covered by 1.0784 to 1.0795. So, all the time that moving average now seems to guard the downside there is the prospect of further upside, but we shall see on that. The EUR/USD is currently trading at 1.0785