EUR/USD Price Analysis: Still room for further decline

• EUR/USD retreats to the sub-1.0700 region on Tuesday.
• Further weakness could challenge the 1.0630 region.

EUR/USD comes under fresh downside pressure and drops below the key support at 1.0700 the figure on turnaround Tuesday.

The pair remains well under pressure 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).

Extra losses to the 2023 low of 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 1.0505.

EUR/USD daily chart