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  • EUR/USD bounces off lows near the 1.1720 region on Wednesday.
  • The next key contention area emerges in the 1.1700 neighbourhood.

Following a drop to multi-day lows in the 1.1720/15 band earlier in the session, EUR/USD has managed to return to the positive ground near 1.1770 at the time of writing on Wednesday.

Despite the current bounce, further pullbacks are still on the cards and could see the 1.1700 zone re-tested in the short-term horizon. In this zone converges a Fibo level and the immediate short-term support line. A move to the September lows near 1.1600 is out of favour for the time being.

Looking at the broader scenario, the bullish view on EUR/USD is expected to remain unchanged as long as the pair trades above the critical 200-day SMA, today at 1.1273.

EUR/USD daily chart