EUR/USD eyes 1.06 as its next target

EUR/USD has preserved its bullish momentum and climbed above 1.0550. The pair eyes 1.06 as bulls remain interested, FXSTreet’s Eren Sengezer reports.

The next bullish target for the pair is located at 1.06

“Later in the session, Existing Home Sales data from the US will be looked upon for fresh impetus. The market consensus points to a 0.2% decrease in May. In case the report reveals a bigger than expected contraction, it could have a negative impact on risk mood and help the dollar hold its ground. On the other hand, the greenback should stay on the back foot if Wall Street's main indexes continue to rise decisively after the opening bell.”

“Right above the 200-period SMA on the four-hour chart at 1.0585, 1.06 (psychological level, Fibonacci 61.8% retracement of the latest downtrend, 100-period SMA) forms key resistance. In case this level fails, additional gains toward 1.0660 (static level, former support) could be witnessed.”

“1.0560 (Fibonacci 50% retracement) now aligns as initial support before 1.0520 (Fibonacci 38.2% retracement) and 1.0500 (psychological level, 50-period SMA).”