EUR/USD has turned south after having tested 1.06 on Thursday. The pair could extend downward correction as 1.0520 support fails, FXSTreet’s Eren Sengezer reports.

1.0560 aligns as interim resistance

“In case the pair starts using the 1.0520 level as resistance, 1.0460 (Fibonacci 23.6% retracement, 20-period SMA) could be seen as the next bearish target ahead of 1.0400 (static level, psychological level).”

“On the upside, 1.0560 (Fibonacci 50% retracement) aligns as interim resistance before 1.0600 (Fibonacci 61.8% retracement, 200-period SMA) and 1.0640 (100-period SMA).”