EUR/USD has started the new week on the back foot. For how long can 1.05 support hold? The pair is likely to continue to face bearish pressure unless the market mood improves, FXStreet’s Eren Sengezer reports.

EUR/USD has more room on the downside

“In case Wall Street's main indexes open sharply lower and continue to suffer heavy losses, EUR/USD is likely to continue to push lower in the second half of the day.”

“In case the 1.05 level turns into resistance, 1.0470 (multi-year low set on April April 26) aligns as the next bearish target before 1.04 (psychological level, static level from December 2016).”

“On the upside, the 1.0540/1.0550 area (50-period SMA, 20-period SMA) forms dynamic resistance before 1.06 (psychological level, Fibonacci 23.6% retracement of the latest downtrend) and 1.0660 (Fibonacci 38.2% retracement, 100-period SMA).”

See: EUR/USD to extend its slide toward 1.0350 on a break below 1.05 – ING