EUR/USD: Sellers to take action on a drop below 1.1040

EUR/USD has struggled to preserve its bullish momentum. Although the pair stays on the back foot early Friday, it could regain its traction as long as buyers continue to defend the 1.1040 support, FXStreet's Eren Sengezer reprots.

Euro to remain bullish as long as 1.1040 support holds

“In case the Russia-Ukraine headlines point to a further escalation of the conflict, investors are likely to stay away from risk-sensitive assets ahead of the weekend.”

“1.1040 (100-period SMA, Fibonacci 50% retracement of the latest downtrend) forms critical support for the pair. In case sellers manage to drag EUR/USD back below that level and hold it there, additional losses toward 1.10 (psychological level, Fibonacci 38.2% retracement, 50-period SMA) could be witnessed.”

“If EUR/USD steadies above 1.1080 (Fibonacci 61.8% retracement), it could target 1.1140 (Thursday high, static level) before turning its attention to 1.12 (psychological level, 200-period SMA).”