EUR/USD to extend its rebound on a break past 1.06

Despite the intense flight to safety on Monday, EUR/USD managed to stay resilient. As FXStreet’s Eren Sengezer notes, bulls could show interest on a move above 1.06.

EUR/USD could extend its recovery with a four-hour close above 1.06

“In case safe-haven flows dominate the markets during the American session, EUR/USD could find it difficult to gather bullish momentum.”

“On the upside, 1.06 (psychological level, Fibonacci 23.6% retracement of the latest downtrend) forms the first resistance. With a four-hour close above that level, the pair could extend its rebound toward 1.0640 (100-period SMA) and 1.0660 (Fibonacci 38.2% retracement).”

“A four-hour close below 1.0540 (20-period SMA, 50-period SMA) could be seen as a bearish development and open the door for additional losses toward 1.05 (psychological level) and 1.0470 (multi-year low set on April April 26).”