EUR/USD Price Analysis: Further decline could see a test of 1.1168

• EUR/USD bounces off cycle lows and retests 1.1230.
• Below the YTD the pair should target 1.1168.

EUR/USD manages to find some dip buyers and advances further north of the 1.1200 mark on Thursday.

If spot breaches the 2021 low at 1.1186 (November 24) then the next target of note emerges at July’s 2020 low at 1.1185 (July 1) before 1.1168 (June 19 2020). The ongoing technical correction also comes in response to the current oversold condition of the pair.

The probability of further losses remains unchanged as long as EUR/USD trades below the 2-month resistance line (off September’s peak) near 1.1580. In the longer run, the offered stance in spot is expected to persist while below the 200-day SMA at 1.1840.

EUR/USD daily chart