EUR/USD to preserve its bullish momentum towards 1.06

EUR/USD has started the new week on a firm footing. The pair could push higher as long as 1.0560 support holds, FXStreet’s Eren Sengezer reports.

Technical outlook points to a bullish tilt

“In case EUR/USD starts using the 200-period SMA on the four-hour chart located at 1.0580 as support, 1.06 (Fibonacci 61.8% retracement of the latest downtrend, psychological level) aligns as interim resistance ahead of 1.0640 (static level) and 1.0660 (static level, former support).”

“Key support seems to have formed at 1.0560 (Fibonacci 50% retracement, 100-period SMA). A four-hour close below that level could attract bears and cause the pair to retreat toward 1.0520 (Fibonacci 38.2% retracement, 50-period SMA) and 1.05 (psychological level).”

“The Relative Strength Index (RSI) indicator holds above 50, confirming the bullish shift in the short-term outlook.”