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  • EUR/USD fails to extend Tuesday’s gains above 1.1900.
  • A breakdown of the 200-day SMA exposes extra losses.

The recovery in EUR/USD struggles to move further north of the 1.19 yardstick so far on Wednesday.

Looking at the broader picture, the continuation of the downtrend appears on the table in the very near-term. That said, the pair looks poised for a test of the critical 200-day SMA (1.1820) in the short-term horizon. A breach of the latter should expose the Fibo level at 1.1762.

If the selling impetus gathers (much) further steam, then 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