EUR/USD has recovered sharply toward 1.05. EUR/USD needs to flip 1.05 into support for an extended rebound, FXStreet’s Eren Sengezer reports.

1.0460 aligns as initial support 

“The Fibonacci 23.6% retracement of the latest downtrend forms first resistance at 1.05. In case the pair rises above that level and starts using it as support, it could target 1.0540 (Fibonacci 38.2% retracement) and 1.0580 (Fibonacci 50% retracement, 200-period SMA on the four-hour chart).”

“On the downside, 1.0460 (20-period SMA) aligns as initial support ahead of 1.0400 (static level, psychological level) and 1.0380 (static level).”