EUR/USD recovered modestly during the European trading hours. The pair needs to reclaim 0.9880 to extend the rebound, FXStreet’s Eren Sengezer reports.

The dollar could lose interest in case US stocks rebound

“In case Wall Street's main indexes gain traction after the opening bell, the dollar could deepen its downward correction and allow EUR/USD to continue to stretch higher.”

“0.9880 (former support, static level) forms initial resistance. If EUR/USD manages to rise above that level and starts using it as support, it could target 0.9900 (psychological level), 0.9950 (static level, 20-period SMA on the four-hour chart) and 0.9980 (100-period SMA).”

“On the downside, 0.9800 (psychological level, static level) aligns as first support ahead of 0.9750 (static level from October 2002) and 0.9700 (psychological level).”