EUR/USD Price Analysis: Recent decline exposes the 1.1700 area

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  • EUR/USD clinched fresh monthly lows near 1.1740 earlier on Thursday.
  • The continuation of the downtrend could see the 1.1700 zone re-visited.

EUR/USD manages to reclaim the 1.18 level after bottoming out in new monthly lows in the 1.1740/35 band during early trade.

If cleared, bears could drag the pair to the key contention zone around 1.17, where converge late August lows and a Fibo level (of the 2017-2018 rally). The 55-day SMA, today at 1.1702, also reinforces this critical juncture.

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 1.1216.

EUR/USD daily chart