EUR/USD has declined below 1.10 early Tuesday after having closed the first day of the week in negative territory. Next bearish target aligns at 1.0940, FXSTreet’s Eren Sengezer reports.

EUR/USD has more room on the downside

“The fundamental outlook favours the dollar against the euro in the near term due to the ECB-Fed policy divergence and the European economy’s high exposure to the ongoing Russia-Ukraine conflict.”

“1.0940 (Fibonacci 23.6% retracement of the latest downtrend) aligns as the next bearish target. In case this level turns into resistance, additional losses toward 1.09 (psychological level) and 1.0840 (static level) could be witnessed.”

“Strong resistance seems to have formed at 1.10 (psychological level, Fibonacci 38.2% retracement, 50-period SMA) ahead of 1.1020 (100-period SMA) and 1.1040 (Fibonacci 50% retracement).”

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