EUR/USD Price Analysis: A drop to the 2022 low is not ruled out

• EUR/USD regains the smile following recent strong pullback.
• The YTD low at 1.1272 emerges as the next support.

EUR/USD regains some buying interest after bottoming out in the proximity of 1.1310 on Tuesday.

The bias appears tilted to further retracement in the very near term. That said, a deeper decline remains on the cards if spot breaks below the weekly low at 1.1314 (January 18). Such a move should open the door to a test of the so far YTS low at 1.1272 (January 4).

The longer term negative outlook for EUR/USD is seen unchanged while below the key 200-day SMA at 1.1722.

EUR/USD daily chart