EUR/USD Price Analysis: Stumbled to two-month low around 1.0700

EUR/USD hit a new two-month low at around 1.0707, though it remains neutral to downward biased unless the pair suffers more weakness, which could send the EUR/USD sinking below the 1.0700 mark toward the 200-day Exponential Moving Average (EMA) at 1.0684. Nevertheless, a mixed market sentiment capped the Euro{s (EUR) fall, even though US Treasury bond yields skyrocketed, underpinning the US Dollar (USD). As the Asian session begins, the EUR/USD trades at 1.0727, up 0.02%.

EUR/USD Price Analysis: Technical outlook

Two days ago, the EUR/USD slumped below the 100-day Exponential Moving Average (EMA) at 1.0776, with sellers taking advantage of it, as the EUR/USD registered three straight sessions of losses. Although the pair will likely print additional losses, sellers must reclaim the 1.0700. That would leave the pair exposed, and once the EUR/USD dives below the 200-day EMA, that would shift the pair bias downwards.

That said, the EUR/USD first support would be the 2020 yearly low of 1.0636, ahead of falling to 1.0600. Break below will expose the March 15 daily low of 1.0516 before dropping to the year-to-date (YTD) low of 1.0482.

Conversely, if EUR/USD stays afloat above 1.0700, the EUR/USD  could stage a comeback, initially to the 100-day EMA at 1.0776. A breach of the letter will expose 1.0800 before the EUR/USD threatens the confluence of technical indicators, like the 50 and 20-day EMAs, at around 1.0845-1.0857. Once the intersection gives way, 1.0900 is on the cards.

EUR/USD Price Action – Daily chart