A breach of 1.1700 is not ruled out

EUR/USD attempts a mild rebound to the 1.1740 area.
Next on the upside comes the 1.1800 hurdle.

EUR/USD puts further distance from Monday’s monthly lows in the 1.1700 neighbourhood.

In spite of the current bounce, the very near-term outlook for the pair remains fragile. If the upside gathers extra steam, then the 1.1780/1.1800 band should emerge as the next important barrier. Here coincides the 10-, 55- and 20-day SMAs along with a Fibo level (of the June-August drop).

A breakdown of the September low at 1.1700 should expose the 2021 low at 1.1663 recorded on August 20.

In the meantime, the near-term outlook for EUR/USD is seen on the negative side while below the key 200-day SMA, today at 1.1984.

EUR/USD daily chart


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