EUR/USD has steadied near 1.07 following Monday's drop. A four-hour close below 1.0680 could open the door for additional losses, FXStreet’s Eren Sengezer reports.
Additional losses are likely if 1.0680 support fails
“If safe-haven flows dominate the financial markets in the second half of the day, US T-bond yields could edge lower and limit the dollar's gains. Nevertheless, the greenback should be favoured against the euro as a safer alternative, not allowing EUR/USD to erase its losses.”
“Earlier in the day, the pair dropped below the Fibonacci 23.6% retracement level of the last uptrend at 1.0680 but managed to close above its on the four-hour chart. In case 1.0680 turns into resistance, 1.0660 (100-period SMA) aligns as the next support ahead of 1.0620 (Fibonacci 38.2% retracement) and 1.06 (200-period SMA).”
“On the upside, 1.07 (psychological level) forms interim resistance before 1.0720 (20-period SMA, 50-period SMA) and 1.0760 (static level).”
