EUR/USD Technical Analysis: Negative below the 55-day SMA

• EUR/USD extends the downside and pierces the key support at 1.1100.
• The pair now shifted its focus to the 55-day SMA.

EUR/USD faded the initial optimism on the back of the renewed sentiment in the risk-associated complex.

The bullish move that started in early December appears to have lost momentum, leaving an interim top in the vicinity of 1.1240 (December 31^st) for the time being.

On the downside the 55-day SMA remains the key magnet. Below this level the outlook on the pair should shift to bearish.

EUR/USD daily chart