EUR/USD has lost its traction following a weak recovery attempt. As FXStreet’s Eren Sengezer notes, the pair is set to face additional selling pressure once 1.1060 fails.

Near-term support seems to have formed at 1.1060

“Markets remain cautious regarding the possibility of a diplomatic solution to the crisis with Russian forces moving closer to Kyiv and the pair is finding it difficult to preserve its recovery momentum. In case investors are convinced that Russia is looking to end the military aggression, the euro is likely to capitalize on a relief rally.”

“In case sellers manage to drag the price below 1.1060, additional losses toward 1.1000 (psychological level) could be witnessed. The Relative Strength Index (RSI) indicator on the four-hour chart stays below 50 and confirms the bearish bias.”

“On the upside, the initial resistance is located at 1.1150 (20-period SMA, static level) before 1.1200 (psychological level) and 1.1220 (50-period SMA).”

See – EUR/USD: Risks to a big break below 1.10 are building – ING