EUR/USD Price Analysis: Further downside not ruled out

• EUR/USD regains the 1.1300 neighbourhood midweek.
• Further weakness is seen revisiting the 1.1220 zone.

EUR/USD manages to regain the smile and bounces off recent lows around 1.1270 on Wednesday.

While below the 4-month resistance line (off September’s high) around 1.1420 there is scope for further decline. That said, the next contention area is predicted to emerge at the monthly low at 1.1221 (December 15).

The broader negative outlook for EUR/USD is seen unchanged while below the key 200-day SMA at 1.1747.

EUR/USD daily chart