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  • EUR/USD comes under pressure following 2020 highs near 1.1920.
  • Further downside is seen visiting recent lows in the sub-1.17 area.

EUR/USD is fading part of the recent move up to record fresh peaks in the 1.1915/20 band, levels last traded in May 2018.

Extra losses in EUR/USD are likely in the short-term horizon on the back of the current overbought conditions and the bearish divergence in the daily RSI, as the recent top was not confirmed by the indicator. That said, a drop to weekly lows just below 1.17 should not be ruled out.

In the longer run, as long as the 200-day SMA, today at 1.1104, holds the downside, further gains in EUR/USD remains well on the table.

EUR/USD daily chart