EUR/USD Outlook: The Euro Could Collapse after Break of Key Supports at 1.1000/40

Technical analysis of Forex market

The Euro fell below 1.10 on Friday, dragged by fresh fall in stock markets on increased risk aversion, as fears over the war in Ukraine rise after the Russian forces seized the biggest nuclear plant in the Europe and growing concerns about the impact of sanction on Russia to the bloc’s economy.

Eventual break of pivotal supports at 1.1040/00 (Fibo 76.4% of 1.0635/1.2349 rally / psychological level) could spark stronger bearish acceleration and risk test of 2020 low at 1.0635, as there are no significant obstacles on the way and overall sentiment continues to sour.

Weekly close below these levels would confirm strong bearish signal.

Technical studies on both, daily and weekly charts remain on negative setup and add to bearish outlook, with fundamentals to remain the main driver.
Traders focus on today’s US labor data for February, with solid job gains and drop in unemployment forecasted that would further support dollar and increase pressure on the single currency.

Res: 1.1000; 1.1040; 1.1067; 1.1100.
Sup: 1.0935; 1.0890; 1.0836; 1.0800.