Both 200 & 800 EMA’s support a further that could reach the 1.12 level.
If the pair breaks below the 1.13 area the door for 1.12 are clear.
"In our view risk aversion is set to rise this year and in this environment the USD is likely to perform well against a broad basket of ‘risky’ currencies including many from the EM universe in addition to the AUD and the NZD. We see risk that EUR/USD could retreat towards 1.12 on a 3 to 6 mth view mostly on the back of EUR weakness."
Disappointing data from Germany and the euro area and the ECB's cautious outlook in its monthly Economic Bulletin this week reminded investors of the economic slowdown in the euro area. Reflecting the markets' negative attitude toward the eurozone, the 10-year Italy - 10-year Germany bond spread rose to its highest level since early December and weighed on the shared currency.