The Euro faced a strong rise in selling pressure after it broke the 1.1050 support area against the US Dollar. The EUR/USD pair declined heavily and broke many supports near the 1.1000 level.
Moreover, the pair settled below the 1.1000 level and the 50 hourly simple moving average. The decline was such that the pair traded to a new monthly low at 1.0964 on FXOpen and recently corrected higher.
On the upside, the pair is struggling to clear the 1.0980 resistance and a bearish trend line on the hourly chart. Besides, the 50% Fib retracement level of the recent decline from the 1.1013 high to 1.0964 low is near the 1.0989 level.
Therefore, EUR/USD must climb above 1.0990 and 1.1000 to start a decent recovery in the near term. If not, there is a risk of a sharp decline below the 1.0960 and 1.0950 support levels.
