EUR/USD PRICE ANALYSIS: A DROP TO THE 1.0630 REGION IS NOT RULED OUT

EUR/USD adds to Friday’s marked pullback and drops to the 1.0680 area on Monday.

The pair remains well under pressure and the continuation of the selling bias should put a potential test of the May low at 1.0635 (May 31) back on the radar in the short-term horizon. If spot clears the 1.0600 support it could then open the door to a deeper decline to the March low at 1.0516 (March 15).

A deeper pullback to the 2023 low at 1.0496 (January 6) would likely need a sharp deterioration of the outlook, which appears not favoured for the time being.

Looking at the longer run, the constructive view remains unchanged while above the 200-day SMA, today at 1.0503