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  • EUR/USD comes under pressure below the 1.18 level.
  • Extra losses could see the mid-1.1700s re-tested in the near-term.

EUR/USD keeps the selling bias unchanged in the first half of the week, returning to sub-1.1800 levels and opening the door to a deeper pullback in the short-term.

That said, while EUR/USD appears to have move into a consolidative range, a move to the key contention zone in the 1.1700/1.1690 band (mid-August lows and a Fibo level) should not be ruled out just yet. The bearish divergence in the daily RSI favours further weakness in the short-term horizon.

Looking at the broader scenario, the bullish view on EUR/USD, in the meantime, is expected to remain unchanged as long as the pair trades above the critical 200-day SMA, today at 1.1190.

EUR/USD daily chart