EUR/USD Price Analysis: The short-term support line holds the downside for now

• EUR/USD meets contention just below 1.17 the figure so far this week.
• Next on the downside comes in the September’s low near 1.1600.

EUR/USD remains under pressure, although it has so far managed well to hold the downside around 1.1690, where sits the immediate support line (off 2020 highs beyond 1.20).

The corrective downside could have further legs to go and therefore a deeper pullback should not be ruled out just yet. Furthermore, if sellers remain in control, then a move to the September lows in the 1.1610 zone could start to gather some traction. Further south awaits the 1.15 level (March’s peak), although a move to this area would need an important deterioration of fundamentals around the European currency, which is out of favour so far.

Looking at the broader scenario, the bullish view on EUR/USD is expected to remain unchanged as long as the pair trades above the critical 200-day SMA, today at 1.1279.

EUR/USD daily chart