EUR/USD Price Analysis: A drop to 1.1700 is not ruled out

• EUR/USD leaves behind recent highs just above 1.18.
• Initial level of the corrective downside emerges at the 1.1700 region.

EUR/USD recorded tops in levels last seen in May 2018 just beyond 1.18 the figure on Wednesday.

Under the ongoing technical retracement, EUR/USD could initially slip back to the 1.1700 neighbourhood, where emerges a Fibo level (of the 2017-2018 drop) ahead of the June peak at 1.1495. The underlying bullish bias, however, is expected to remain unchanged with potential target at the 1.1815/52 band, where converge the September/June 2018 highs.

Looking at the broader picture, as long as the 200-day SMA, today at 1.1082, holds the downside, further gains in EUR/USD remains well on the table.

EUR/USD weekly chart