Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, noted that a failure in the 1.0989 level could spark further losses to the 1.0940 region.

“EUR/USD continues to hold over the 1.0989 mid-November low. Whilst it holds, last week’s high at 1.1097 may be revisited, a rise above which would have the 1.1180 October high in its sights. Above 1.1180 will target the 1.1255 one year channel. However the support is looking a little exposed and failure here will trigger another leg lower to the 1.0943 78.6% retracement”.