• EUR/USD gives away part of the recent 2-session gains on Wednesday.
• Further downside lies ahead once the monthly low is breached.

EUR/USD could not sustain Tuesday’s bull run to levels just beyond the 1.0800 barrier, sparking a corrective decline soon afterwards.

If the selling pressure gathers extra impulse, the pair could dispute the February low at 1.0655 (February 13) in the near term. Against that, the breach of this level could expose further weakness to the next support of note at the YTD low at 1.0481 (January 6).

In the longer run, the constructive view remains unchanged while above the 200-day SMA, today at 1.0324.

EUR/USD daily chart