EUR/USD to decline towards 1.10 with a drop below 1.1080

EUR/USD has met heavy selling pressure on Tuesday and touched its weakest level in 22 months below 1.1100. As FXStreet’s Eren Sengezer notes, euro bears eye 1.1000 as Russian aggression continues.

Near-term support seems to have formed at 1.1080

“The Russia-Ukraine conflict is likely to have a stronger impact on the euro area economy than the US economy and the pair is likely to remain on the back foot unless there is a solution to the crisis.”

“EUR/USD seems to have met interim support at 1.1080 and the pair could face renewed bearish pressure if buyers fail to defend this level. On the downside, 1.1000 (psychological level) could be seen as the next support.”

Resistances are located at 1.1150 (static level), 1.1180 (20-period SMA) and 1.1220 (static level).”

See: EUR/USD to drop towards 1.10 unless heartening news of a ceasefire in Ukraine – ING