• EUR/USD treads water in the sub-0.9900 region on Thursday.
• Further pullbacks remain on the cards while below parity.

EUR/USD trades without a clear direction below the 0.9900 region on Thursday.

The pair failed to test/surpass the parity level in the last couple of sessions, opening the door to further weakness in the short-term horizon.

Ideally, EUR/USD should leave behind that key resistance zone in the near term to allow for the continuation of the rebound. The inability to break above the parity zone could leave the pair vulnerable to further pullbacks. That said, another visit to the 20-year low in the mid-0.9500s should not be ruled out for the time being.

In the longer run, the pair’s bearish view should remain unaltered while below the 200-day SMA at 1.0625.

EUR/USD daily chart