EUR/USD Price Analysis: Room for extra decline near term

• EUR/USD resumes the downtrend, retests 1.0850 on Tuesday.
• Next on the downside comes the 2022 low at 1.0805.

EUR/USD fades the bull run to the 1.0900 zone soon after the release of US inflation figures.

That said, immediately to the upside comes the temporary resistance at the 55-day SMA, today at 1.1156 ahead of the 1.1230 region, where the 100-day SMA and the 8-month line coincide. Beyond this area, the selling bias is expected to subside and allow for extra gains in the short-term horizon.

Considering the ongoing price action, further decline remains in store for the pair in the short-term horizon. Against that, a break below the so far monthly low at 1.0836 (April 8) should open the door to a move to the YTD low at 1.0805 (March 7).

The medium-term negative outlook for EUR/USD is expected to remain unchanged while below the key 200-day SMA, today at 1.1450

EUR/USD daily chart