• EUR/USD regains some ground following Monday’s drop.
• The breakdown of 1.1590 should allow for a deeper pullback.

EUR/USD regains some composure and looks to extend the bounce above the 1.1600 mark on a more sustainable fashion.

In the meantime, the inability of spot to move higher in the short-term horizon could trigger some corrective move to, initially, the weekly low at 1.1590 (October 25). A drop beyond this level is seen exposing another weekly low near 1.1570 (October 18), all prior to the 2021 low at 1.1524 (October 12).

In the meantime, the near-term outlook for EUR/USD is seen on the negative side below the key 200-day SMA, today at 1.1911.

EUR/USD daily chart