EUR/USD is unlikely to stage a steady rebound

EUR/USD has steadied above 0.9900 following earlier decline. However, the pair remains vulnerable, FXStreet’s Eren Sengezer reports.

EUR/USD has more room on the downside

“Although the trading action is likely to remain muted in the second half of the day, the euro is unlikely to stage a steady rebound.”

“0.9900 (psychological level, static level) aligns as first support on the downside. With a drop below that level, EUR/USD could extend its slide toward 0.9875 (daily low) and 0.9800 (psychological level).”

“On the upside, first resistance is located at 0.9950 (static level) ahead of 0.9975 (20-period SMA, 50-period SMA) and 1.0000 (psychological level, Fibonacci 32.6% retracement of the latest downtrend).”