EUR/USD Price Analysis: Recovery looks unsustainable

EUR/USD picks up traction and bounces off monthly lows.
Another test of the 2021 lows remains on the cards.

EUR/USD finally regains the smile and retakes the 1.1700 barrier and above on Thursday.

In spite of the current bounce, the very near-term outlook for the pair still looks fragile. If the upside gathers extra steam, then there are interim hurdles at the 10-day SMA at 1.1758 followed by the 1.1790/1.1800 region, where sits the 55- and 20-day SMAs along with a Fibo level (of the June-August drop).

A breakdown of the September low at 1.1683 would 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 1.1980.

EUR/USD daily chart