EUR/USD has staged a rebound after having declined toward 0.9900. Hawkish ECB commentary could help the shared currency to limit its losses, FXStreet’s Eren Sengezer reports.
0.9920 aligns as first support before 0.9900
“The risk-averse market environment favors the greenback at the beginning of the new week but hawkish comments from European Central Bank (ECB) officials could limit the pair's downside in the near term.”
“On the upside, the 20-period SMA forms interim resistance at 0.9960 ahead of the all-important parity level. Even if the pair rises above the latter, it could face stiff resistance at 1.0020, where the Fibonacci 23.6% retracement of the latest downtrend meets the 50-period SMA.”
“On the downside, 0.9920 (end-point of the downtrend) aligns as first support before 0.9900 (psychological level, multi-year lows) and 0.9850 (static level from July 2002).”