EUR/USD Price Analysis: Extra losses likely on a breach of 1.0990

• EUR/USD’s recovery seems to have met a tough barrier near 1.1150.
• A breach of 1.0990 should open the door to further downside.

EUR/USD is seeing some correction after the rally run out of steam in the 1.1150 zone earlier in past sessions. This area of resistance is coincident with a Fibo retracement of the March drop.

The pair is now flirting with the 55-day SMA just above 1.10 the figure, managing to bounce off the key support area around 1.0990 (January’s low).

If the bearish move picks up pace and breaks below the 1.0990 region on a sustainable basis, then the next interim support is seen at 1.0964 (Fibo retracement of the March drop) ahead of February’s low at 1.0777.

EUR/USD daily chart