EUR/USD is trading back above 1.0550, resuming its recovery towards 1.0600 in the European session this Wednesday.
As of writing, EUR/USD was trading slightly above the 200-period SMA on the four-hour chart, which is currently located at 1.0580. In case the pair starts using that level as support, 1.0600 aligns as interim resistance ahead of 1.0640 (static level) and 1.0660 (static level, former support).
On the downside, key support seems to have formed at 1.0560 (Fibonacci 50% retracement, 100-period SMA). A four-hour close below that level could attract bears and cause the pair to retreat toward 1.0520 (Fibonacci 38.2% retracement, 50-period SMA) and 1.0500 (psychological level).
The US dollar is falling as the risk rebound extends, despite looming recession fears.
In other news, the GBP/USD is extending the advance above 1.2300 in European trading. The risk-on mood dents the US dollar’s safe-haven appeal while the UK presses on with changes to the Brexit deal despite EU opposition.
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