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  • EUR/USD extends the downside to the vicinity of 1.1700.
  • Bets for a deeper retracement below 1.17 keep rising.

EUR/USD navigates the area of fresh multi-day lows in the 1.1700 neighbourhood on the back of the prevailing risk aversion atmosphere.

The continuation of the downtrend seems likely in the very near-term. A breach of the key contention area in the 1.1700/1.1685 area could pave the way for a retracement to the September’s low at 1.1612.

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 1.1310.

EUR/USD daily chart