EUR/USD has reversed its direction following Tuesday's decisive rebound. As FXStreet’s Ere Sengezer notes, sellers could take action if 1.05 support fails.

1.05 aligns as key support level in the near-term

“In case Wall Street's main indexes fall sharply after the opening bell, EUR/USD could stretch its daily slide in the second half of the day.”

“In case EUR/USD starts using the 100-period SMA on the four-hour chart, which is currently located at 1.0520 as resistance, it might test 1.05 (psychological level, Fibonacci 61.8% retracement of the latest decline).”

“A four-hour close below the 1.05 level could be seen as a bearish development and open the door for additional losses toward 1.0480 (Fibonacci 50% retracement) and 1.0450 (Fibonacci 38.2% retracement).”

“On the upside, static resistance seems to have formed at 1.0550. EUR/USD needs to clear that hurdle to target the next static level at 1.0580 and 1.06 (psychological level) afterwards.”