EUR/USD has gathered recovery momentum on improving market mood. In case risk flows continue to dominate the financial markets, the pair could extend its rebound in the near-term, FXStreet’s Eren Sengezer reports.

Euro to extend recovery once 1.1040 turns into support

“Later in the day, FOMC Chairman Jerome Powell will deliver a speech. A hawkish tone should help the greenback find demand and vice versa. Additionally, the European Commission will release the preliminary Consumer Confidence data for March, which is expected to decline to -12.9 from -8.8.”

“1.1040 (Fibonacci 50% retracement of the latest downtrend) aligns as the first technical resistance. In case this level turns into support, the next bullish targets align at 1.1080 (Fibonacci 61.8% retracement) and 1.11 (psychological level).”

“Key support seems to have formed at 1.10 (psychological level, Fibonacci 38.2% retracement, 50-period SMA, 100-period SMA). If a four-hour candle closes below that level, sellers could look to take control and drag the pair toward 1.0940 (Fibonacci 23.6% retracement).”

See: EUR/USD to move within a 1.0960 to 1.1140 trading range in the coming sessions – OCBC