• EUR/USD extends the Powell-led steep drop to the 1.0520 region.
• Immediately to the downside now emerges the YTD low near 1.0480.

EUR/USD adds to Tuesday’s intense sell-off and hits new 2-month lows in the 1.0525/20 and on Wednesday.

The continuation of the selling pressure could force the pair to challenge the 2023 low at 1.0481 (January 6) ahead of the minor support at 1.0443 (weekly low December 7 2022).

Looking at the longer run, the constructive view remains unchanged while above the 200-day SMA, today at 1.0325.

EUR/USD daily chart