EUR/USD to sustain further losses on a break below 1.1280

EUR/USD has extended its slide pressured by risk aversion. As FXStreet’s Eren Sengezer notes, additional losses could be witnessed if buyers fail to defend 1.1280.

Risk aversion favours bears

“In case the market mood continues to sour, the shared currency could find it difficult to stay resilient against the dollar. As it currently stands, a de-escalation of the conflict looks unlikely, favouring the bears in the near-term.” 

“On the downside, 1.1280 (static level) aligns as key support. Below that level, the Fibonacci 61.8% retracement of the latest uptrend forms interim support at 1.1260 before the pair could target 1.1240 (static level).”

“Sellers are likely to move to the sidelines if the pair manages to reclaim the 1.1340/1.1350 area (Fibonacci 38.2%, 200-period SMA and 100-period SMA). 1.1400 (psychological level, Fibonacci 23.6% retracement of the latest uptrend) could be seen as the next resistance.”