EUR/USD has gone into a consolidation phase above 0.9800. The pair needs to clear 0.9850 resistance to continue to stretch higher, FXStreet’s Eren Sengezer reports.

Euro needs to clear 0.9850 to extend recovery

“On the upside, the Fibonacci 61.8% retracement of the latest downtrend forms initial resistance at 0.9850 ahead of 0.9875 (100-period SMA). With a four-hour close above the latter, the pair could target 0.9925 (200-period SMA) next.”

“0.9800 (psychological level, Fibonacci 50% retracement) aligns as first support before 0.9750 (Fibonacci 38.2% retracement, 50-period SMA) and 0.9700 (psychological level).”