EUR/USD has gone into a consolidation phase above 0.9800. Quarter-end flows could help the pair extend its rebound ahead of the weekend, FXStreet’s Eren Sengezer reports.

0.9850 aligns as initial resistance

“In case the risk rally stays intact, the dollar is likely to continue to lose interest ahead of the weekend. Profit-taking on the last trading day of the third quarter could also help EUR/USD preserve its bullish momentum.”

“On the upside, 0.9850 (Fibonacci 61.8% retracement of the latest downtrend) aligns as initial resistance. With a four-hour close above that level, the pair could target 0.9900 (psychological level, 100-period SMA) and 0.9950 (200-period SMA).”

“Supports are located at 0.9800 (Fibonacci 50% retracement), 0.9750 (Fibonacci 38.2% retracement, 50-period SMA) and 0.9700 (psychological level, 20-period SMA).”