EUR/USD: Prospects for additional gains

The EUR/USD pair saw an overnight sustained move above the 23.6% Fibonacci level of the 1.1497-1.0636 recent slump supports prospects for additional gains, Haresh Menghani from FXStreet reports. 

Key quotes

“Any subsequent positive move is likely to confront a stiff resistance near the 1.0965-70 region, marking 38.2% Fibo. level. This is closely followed by 50-day SMA, just ahead of the key 1.10 psychological mark, which should now act as a key pivotal point for short-term traders.”

“Immediate support is now pegged near the 1.0875 horizontal zone ahead of the 1.0840 level (23.6% Fibo.). Failure to defend the said support levels might offset the near-term positive outlook, rather prompt some technical selling and drag the pair back towards the 1.0800 round-figure mark.”