EUR/USD may test 1.11 support before the next leg higher towards 1.12

EUR/USD has extended its recovery following Tuesday's upsurge. The pair could target 1.12 as long as buyers continue to defend 1.11, FXStreet’s Eren Sengezer reports.

Euro recovery to continue as long as 1.11 support holds

“The 200-period SMA aligns as critical support at 1.11. In case this level holds following a downward correction, EUR/USD faces interim resistance at 1.1140 (static level) before it can extend its rebound to 1.12 (psychological level, static level).”

“If the pair falls below 1.11 and starts using that level as resistance, next supports are located at 1.1080 (Fibonacci 61.8% retracement of the latest downtrend)and 1.1040 (Fibonacci 50% retracement).”