A drop to the 1.1170 zone remains on the cards

  • EUR/USD failed to test/surpass the 1.1300 level on Monday.
  • Focus seems to have shifted to the downside and to 1.1170/65.

EUR/USD is fading Monday’s gains and the inability to break above the 1.1300 level has now prompted market participants to re-focus on the downside.

Against this, the probability of a potential move to the area of recent weekly lows in the 1.1170/65 band has been picking up pace.

On the broader picture, and as long as the 200-day SMA at 1.1033 holds the downside, further gains in the pair remain on the table.

EUR/USD daily chart