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EUR/USD Price Analysis: Failure near 1.20 prompts a correction

  • EUR/USD comes down and tests the 1.19 area on Friday.
  • A drops and test of recent lows near 1.830 is not ruled out.

The bull run in EUR/USD met a tough barrier in the vicinity of the psychological 1.20 hurdle in the second half of the week.

The continuation of the offered bias could motivate EUR/USD to attempt another visit of the 2021 lows in the 1.1835/30 band (March 9) in the near-term. This area of lows is reinforced by the proximity of the key 200-day SMA, today at 1.1828.

Below the latter, potential losses are expected to accelerate. That said, the pair could test the 2008-2020 support line in the 1.1600 area. This scenario, however, is not favoured for the time being.

EUR/USD daily chart

 

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