EUR/USD Price Analysis: The 100-day SMA offers initial contention

• EUR/USD meets initial support in the 1.1650 region so far.
• Bets for a deeper pullback keep gathering pace.

EUR/USD navigates the area of monthly lows in the mid-1.1600s so far, always under pressure amidst prevailing risk aversion.

The continuation of the downtrend seems likely in the very near-term. A breach of recent lows around 1.1650 should expose a deeper move down to the September’s low near 1.1610. The recent dovish message from the ECB somehow reinforces this view.

Looking at the broader scenario, the bullish view on EUR/USD is expected to remain unchanged as long as the pair trades above the critical 200-day SMA, today at 1.1313.

EUR/USD daily chart