EUR/USD has edged higher at the start of the new week but struggled to gather bullish momentum. A four-hour close below 1.0470 could be seen as a bearish development, FXStreet's Eren Sengezer reprots.

Sellers could take action in case 1.0470 support fails

“On the downside, 1.0470 (Fibonacci 23.6% retracement of the latest downtrend, 20-period SMA), aligns as initial support. A four-hour close below that level could be seen as a significant bearish development and open the door for additional losses toward 1.0400 (psychological level) and 1.0380 (static level).”

“EUR/USD is trading near 1.0520 (Fibonacci 38.2% retracement). In case this level is confirmed as support, next bullish targets are located at 1.0560 (Fibonacci 50% retracement), 1.0580 (200-period SMA) and 1.0600 (psychological level, Fibonacci 61.8% retracement).”

See: EUR/USD may find a floor around 1.0400-1.0450, but downside risks to 1.02-1.00 persist – ING