EUR/USD could extend its downward correction if 1.03 is confirmed as resistance

EUR/USD has failed to clear the stiff resistance that sits at 1.0370 and has gone into a consolidation phase early Friday. The pair could extend correction if the 1.0300 resistance holds, FXStreet’s Eren Sengezer reports.

Euro could continue to edge lower toward the end of the week

“In case the pair starts using 1.0300, where the Fibonacci 50% retracement of the latest downtrend is located, as resistance, additional losses toward 1.0230 (Fibonacci 38.2% retracement, 200-period SMA on the four-hour chart) and 1.0200 (psychological level, 100-period SMA) could be witnessed.”

“On the flip side, 1.0370 (Fibonacci 61.8% retracement of the latest downtrend, Aug. 10 high) aligns as key resistance ahead of 1.0400 (psychological level) and 1.0450 (static level).”