EUR/USD to slide towards 1.20 on a break below 1.2110

The EUR/USD pair is trading with modest losses around 1.2140 and risks a corrective decline on a break below 1.2110, Valeria Bednar, Chief Analyst at FXStreet, reports.

Key quotes

“Speculative interest is struggling with fundamental headlines, mostly related to the ongoing pandemic. News that several countries are starting vaccination are being overshadowed by fresh lockdowns in the US and Europe. Even further, the number of vaccines available is pretty much symbolic.”

“The EUR/USD pair is neutral-to-bearish in the near-term, as the 4-hour chart shows that the price is piercing its 20 SMA, while the longer ones maintain their bullish slopes well below the current level. Technical indicators turned south and are entering negative territory, although they are still neutral.” 

“A break below 1.2110 should favor a bearish extension towards the 1.2000 figure.”