EUR/USD has scaled back above 1.0600 in early Europe this Friday. The pair is helped by a broad-based US Dollar weakness amid retreating US Treasury bond yields and an upbeat mood.
EUR/USD is currently trading slightly above the descending regression channel coming from early February. The 20-period and the 50-period Simple Moving Averages (SMA) reinforce that resistance area that aligns at 1.0610/1.0620. Once the pair stabilizes above that hurdle, it could target 1.0650/60 (Fibonacci 23.6% retracement of the latest downtrend, 100-period SMA), 1.0700 (psychological level) and 1.0720 (Fibonacci 38.2% retracement).
On the other hand, if the pair returns within the descending channel, sellers could take action and cause EUR/USD to slide toward 1.0560 (mid-point of the descending channel), 1.0540 (static level) and 1.0500 (psychological level, lower limit of the descending channel).
Related– EUR/USD hovers around multi-week lows below 1.0600
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