EUR/USD Price Analysis: A drop to 1.1612 is shaping up…

• EUR/USD loses the grip further and tests the 1.17 neighbourhood.
• Next on the downside comes in the September’s low near 1.1600.

EUR/USD debilitates further and probes the area of monthly lows around the 1.1700 yardstick on Thursday.

The corrective downside appears quite firm and a deeper pullback is not ruled out in the short-term horizon. Therefore, 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 1.1276.

EUR/USD daily chart