• EUR/USD manages to bounce off recent lows near 1.0700.
• The next contention appears at the 1.0630 zone.

EUR/USD recoups part of the ground lost on Tuesday’s sell-off and reclaims the 1.0740 area on Wednesday.

Despite the ongoing rebound, the pair remains well under pressure and the door remains open to extra losses in the short-term horizon. Against that, the loss of the 1.0700 support is expected to motivate the pair to challenge the May low of 1.0635 (May 31) in the not-so-distant future.

In the meantime, further losses remain in the pipeline while below the key 200-day SMA, today at 1.0820.

EUR/USD daily chart