EUR/USD: Technical bearish pressure is ramping up, 1.1240 aligns as next strong support

EUR/USD has declined below 1.1300 amid renewed dollar strength. As FXStreet’s Eren Sengezer notes, the door is open for additional losses.

Near-term technical outlook points to additional losses

“The dollar's market valuation should remain the primary driver of EUR/USD's movements on Tuesday. In case US T-bond yields continue to rise on the back of an upbeat market mood, the pair could find it difficult to reverse its direction.”

“The 200-period SMA on the four-hour chart is currently acting as a dynamic hurdle near 1.1300. The 100-period SMA is enforcing that resistance area as well. Unless EUR/USD manages to flip that level into support, sellers are likely to continue to dominate the pair's action.”

“1.1270 (static level) aligns as interim support ahead of 1.1240 (static level). The latter held as support when the pair fell 100 pips back in mid-December, punctuating the importance of this level.”