EUR/USD has declined to the lower limit of its short-term trading range. A four-hour close below 0.9950 could bring in additional sellers, FXStreet’s Eren Sengezer reports.

Multi-year lows could be targeted if 0.9950 fails

“0.9950 (static level) aligns as key technical support. In case EUR/USD falls below that level and starts using it as resistance, it could extend its slide toward 0.9900 (psychological level) and 0.9865 (September 6 low).”

“In order to convince buyers of a steady recovery, EUR/USD needs to break above 1.0000 (psychological level, 100-period SMA). In such a scenario, resistances are located at 1.0020 (50-period SMA), 1.0040 area (Fibonacci 50% retracement) and 1.0070 (Fibonacci 38.2% retracement, 200-period SMA).”