EUR/USD Price Analysis: A drop to 2021 lows stays on the cards

EUR/USD resumes the downside after surpassing 1.2100.
A deeper pullback could reach the 2021 low at 1.1952.

Pablo Piovano FXStreet

EUR/USD fades Tuesday’s decent advance and shift its focus back to the downside and to a potential re-test of the 1.2000 neighbourhood.

Despite the ongoing weakness is seen as temporary, it could extend further and attempt to revisit the YTD lows in the mid-1.1900s (recorded in early February) if 1.2000 is breached in a sustainable fashion. Below yearly lows the selling pressure is expected to pick up pace, exposing the next target at the Fibo level at 1.1887.

On the broader picture, the constructive stance in EUR/USD remains unchanged while above the critical 200-day SMA, today at 1.1799.

Looking at the monthly chart, the (solid) breakout of the 2008-2020 line is a big bullish event and should underpin the continuation of the current trend in the longer run.

EUR/USD daily chart

EUR/USD

Overview
Today last price	1.2048
Today Daily Change	71
Today Daily Change %	-0.34
Today daily open	1.2089

Trends
Daily SMA20	1.2095
Daily SMA50	1.2144
Daily SMA100	1.2031
Daily SMA200	1.1807

Levels
Previous Daily High	1.2094
Previous Daily Low	1.1992
Previous Weekly High	1.2243
Previous Weekly Low	1.2065
Previous Monthly High	1.2243
Previous Monthly Low	1.1952
Daily Fibonacci 38.2%	1.2055
Daily Fibonacci 61.8%	1.2031
Daily Pivot Point S1	1.2023
Daily Pivot Point S2	1.1956
Daily Pivot Point S3	1.192
Daily Pivot Point R1	1.2125
Daily Pivot Point R2	1.2161
Daily Pivot Point R3	1.2228

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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