EUR/USD Price Analysis: A drop to the 1.0630 remains in the pipeline

• EUR/USD leaves behind Tuesday’s pullback and retakes 1.0700
• The selling bias still dominates the sentiment around the pair.

EUR/USD regains upside traction and moves beyond the key barrier at 1.0700 the figure on Wednesday.

The pair remains well under pressure despite the bullish move and the continuation of the selling bias should prompt a probable test of the May low at 1.0635 (May 31) to emerge on the horizon in the short term. If spot clears the 1.0600 support it could then open the door to a deeper decline to the March low at 1.0516 (March 15).

A deeper pullback to the 2023 low at 1.0481 (January 6) would likely need a sharp deterioration of the outlook, which appears not favoured for the time being.

Looking at the longer run, the constructive view remains unchanged while above the 200-day SMA, today at 1.0510.

EUR/USD daily chart