EUR/USD to see further falls on a dip below the 1.2040 zone

EUR/USD regains the smile following Wednesday’s pullback as the mid-1.2000s have so far emerged as decent support. According to FXStreet’s Pablo Piovano, extra losses are seen on a breach of 1.2040.

See – EUR/USD: ECB to deny a jump above 1.22 – Westpac

Decent contention so far emerging in the 1.2050 region

“The persevering dovish message from the Federal Reserve plus the relentless recovery in the Old Continent coupled with the firmer pace of the vaccination campaign still remains a source of potential upside in EUR/USD for the time being.”

“The continuation of the leg lower is expected to meet initial and interim support around the 100-day SMA, today at 1.2042. A clear breach of this contention area is seen putting the psychological support at 1.2000 back on the radar ahead of the so far May low at 1.1985 (May 5).”

“On the upside, bulls need to regain monthly peaks in the 1.2180/90 band to allow for the resumption of the uptrend and a potential visit to the 1.2200 mark and beyond.”