• EUR/USD drops to new lows near 1.0750 on Wednesday.
• Further selling could revisit the minor level at 1.0712.

EUR/USD manages well to reverse the initial knee-jerk to fresh 2-month lows in the 1.0750/45 band midweek.

Despite the ongoing bounce and the apparent consolidative mood, the breach of the May low near 1.0750 could spark a deeper move to the minor support level at 1.0712 (March 24).

A deeper decline to the March bottom of 1.0516 (March 15), in the meantime, remains not favoured for the time being.

Looking at the longer run, the constructive view remains unchanged while above the 200-day SMA, today at 1.0474.

EUR/USD daily chart