- EUR / USD extends the bearish leg to the 1.2030 / 25 band.
- A further drop could see the 1.2000 level challenged once again.
EUR / USD adds to Wednesday’s losses and flirts with the 100-day simple moving average near 1.2020.
Although the current weakness is considered only corrective, it has the potential to spread further and challenge the 1.20 zone in the near term. In the event of a break, a move after this year’s lows near 1.1950 (recorded in early February) will appear on the horizon. Below this zone, the selling pressure is expected to accelerate and expose 1.1887 (Fibonacci level).
In the bigger picture, EUR / USD’s bullish stance will remain unchanged while it is above the critical 200-day SMA, today at 1.1804.
Looking at the monthly chart, the solid break of the 2008-2020 line is a big bullish event and should support the continuation of the current long-term trend.
EUR / USD day chart
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