EUR/USD Price Analysis: Key 1.1085 support appears at risk amid impending bear cross
|- EUR/USD holds the lower ground as investors remain cautious.
- Russia-Ukraine peace talks 2.0 and Powell’s testimony in focus.
- An impending bear cross keeps the downside risks intact in EUR/USD.
EUR/USD is pressurizing daily lows just above 1.1100, eyeing a sustained move below the 2022 lows of 1.1090 amid a tepid risk sentiment.
Investors remain cautious after US President Joe Biden announced a ban of Russian flights from using American airspace, his first State of the Union address. Markets are already witnessing to the Russian aggression over Ukraine, as the first round of peace talks between both the warning nations ended with no progress.
Traders refrain from placing any fresh bets on the major ahead of another round of talks between them due later on Wednesday. In times of uncertainty and market unrest, the US dollar appears to be the go-to safe-haven asset for the market, which in turn weighs down on the main currency pair.
The pair also awaited the US ADP Employment data and Fed Chair Jerome Powell’s testimony for fresh trading incentives.
EUR/USD: Technical outlook
As observed on the daily chart, EUR/USD is looking to test the critical falling trendline support, now at 1.1085, once again.
The 14-day Relative Strength Index (RSI) sits just above the oversold territory, suggesting that there is still some scope for the bears to flex their muscle before the pair could stage a corrective bounce.
Further, the 21-Daily Moving Average (DMA) is set to cross the 50-DMA for the downside, which if materialized will flash fresh bearish signals.
Therefore, daily closing below that key cap could trigger a fresh sell-off towards 1.1050, with a test of the 1.1000 round figure on the cards.
EUR/USD: Daily chart
On the other side, if bulls defend that trendline support, then 1.1150 will initially challenge the road to recovery.
The next stop for buyers is aligned at 1.1200, the psychological level.
All in all, the path of least resistance appears down for the EUR/USD pair.
EUR/USD: Additional levels to consider
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