EUR/USD needs to clear 1.0940 for an extended rebound

FXStreet Insights Team FXStreet

EUR/USD has been fluctuating in a narrow channel above 1.09. The euro needs to clear 1.0940 to extend recovery, FXStreet’s Eren Sengezer reports.

Risk perception likely to continue to impact euro's valuation in near-term

“Russian and Ukrainian officials are expected to hold the next round of talks at 08:30 GMT on Monday. A renewed optimism for a diplomatic solution is likely to help the euro gather strength. On the flip side, the shared currency is likely to continue to face selling pressure in case market participants price in a prolonged conflict.”

“In case EUR/USD rises above 1.0940 (Fibonacci 23.6% retracement of the latest downtrend) and starts using it as support, additional gains toward 1.0970 (50-period SMA on the four-hour chart) and 1.10 (psychological level, Fibonacci 38.2% retracement) could be witnessed.”

“1.09 (psychological level, static level) aligns as the first support before 1.0850 (static level) and 1.0800/05 (psychological level, March 7 low).”

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FXStreet Insights Team

FXStreet

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