MUFG Research discusses the key levels to watch in EUR/USD on the downside.

"It was notable yesterday that on a day in which the advance PMIs were stronger than expected EUR/USD continued to slide. The 38.2% retracement support level from the move higher in EUR/USD from the February 2025 low to the January 2026 high comes in at 1.1340 and that to us is the next key support," MUFG notes.

"A test and breach of that level would likely see the move lower in EUR/USD extend into a 1.10-1.12 range," MUFG adds.