EUR/USD Technical Analysis: Downside could extend to the 55-day SMA at 1.1041

• EUR/USD’s weekly advance lost traction in the 1.1080/90 band so far.
• Further selling interest could see the 55-day SMA in the 1.1040 area retested.

EUR/USD came under selling pressure on Wednesday after failing to extend its march further north of the 1.1080/90 band.

The leg lower is accompanied by the pick-up in the sentiment surrounding the buck amidst rising trade concerns and lower yields.

That said, the continuation of the bearish note could drag spot back to the key 1.1040 region, where sits the 55-day SMA. Below this important area of contention, the upside pressure is expected to alleviate.