EURUSD continues to extend sharp decline from 1.0600

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Overall, after updating the low around 1.0497, the price recovered around 0.08% on the day.

However, EUR/USD remained on the defensive near 1.0550 during the European session on Monday. The pair remained weak as geopolitical risks between Russia and Ukraine resurfaced although the US Dollar limited its gains. The divergent policy outlook of the ECB-Fed also weighed on the pair ahead of the central bank talks.

Today, there will be no high-impact data that could influence the action of EUR/USD. Therefore, market participants will pay close attention to comments from central bank officials.

Technically, price resistance at 1.0550 - 1.0660 and resistance at 1.0663 should be watched. A false breakout and consolidation below these areas could trigger a decline.
Currently, Euro is hinting that the pullback could be a bit longer. MMs are likely to look for liquidity (above these levels) ahead of the news. A false breakout could trigger sellers to act, which would only add to the selling pressure.
However, a mild recovery from 1.0550 and back to 1.0497 would increase the likelihood of a breakdown and decline.