EUR/USD Price Analysis: A deeper pullback exposes 1.1700

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  • EUR/USD rebounds from 3-month lows near 1.1750.
  • Extra downside could see the YTD low around 1.1700 retested.

In spite of the current bounce, EUR/USD remains fragile below 1.1800 and flirts with the 2020-2021 support line near 1.1780.

A sustainable break below this zone would be an important bearish event and carries the potential to accelerate losses to the 2021 low in the 1.1700 neighbourhood (March 31).

Further out, the near-term outlook for EUR/USD is seen on the negative side while below the key 200-day SMA, today at 1.2002.

EUR/USD daily chart