From a technical perspective, last week's sustained move beyond the 23.6% Fibonacci retracement level of the December-February fall was seen as a key trigger for bulls. Moreover, oscillators on the daily chart have just started gaining positive traction and validate the positive outlook. That said, it will still be prudent to wait for a move above the very important 200-day Simple Moving Average (SMA) before positioning for additional gains.
The EUR/USD pair might then aim to surpass the 1.0865 zone or the 38.2% Fibo. level, before aiming to retest the multi-week high touched last Thursday. Some follow-through buying beyond the 1.0900 mark should lift the EUR/USD pair further towards the 50% Fibo. level, around the 1.0965-1.0970 region. The momentum could extend further and allow bulls to reclaim the 1.1000 psychological mark for the first time since January 11.
On the flip side, the 1.0800 mark, or the 23.6% Fibo. level might continue to protect the immediate downside. Any further slide is likely to attract fresh buyers near the 1.0760 horizontal zone. The latter should act as a pivotal point, which if broken will suggest that the recent recovery from a three-month low has run out of steam already and make the EUR/USD pair vulnerable to accelerate the fall towards retesting sub-1.0700 levels.
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