EUR/USD could stage a technical correction if it stabilizes above parity

EUR/USD has gone into a consolidation phase following Tuesday's slump. The pair could stage a correction if it manages to rise above parity and hold there, FXStreet’s Eren Sengezer reports.

Euro needs to stabilize above parity for a chance of recovery

Above 1.0000 (psychological level, 100-period SMA, 50-period SMA), the pair could target 1.0050 (Fibonacci 38.2% retracement of the latest downtrend), 1.0080 (20-period SMA) and 1.0100 (200-period SMA).”

“On the downside, additional losses toward 0.9950 (static level), 0.9900 (psychological level) and 0.9865 (September 6 low) could be witnessed in case buyers fail to reclaim parity.”