EUR/USD Price Analysis: Door open for a test of 2021 lows

• EUR/USD’s decline breached the key support at 1.20 the figure.
• A deeper pullback could reach the 2021 low at 1.1952.

EUR/US’s leg lower dropped further and recorded new 4-week lows in the 1.1990 region on turnaround Tuesday.

Despite the ongoing weakness is seen as temporary, it could extend further and attempt to revisit the YTD lows in the mid-1.1900s recorded in early February. Below this area the selling pressure could start to pick up pace, exposing the next target at the Fibo level at 1.1887.

On the broader picture, the constructive stance in EUR/USD remains unchanged while above the critical 200-day SMA, today at 1.1793.

Looking at the monthly chart, the (solid) breakout of the 2008-2020 line is a big bullish event and should underpin the continuation of the current trend in the longer run.

EUR/USD daily chart