EUR/USD Price Analysis: A deeper pullback could re-test 1.2130

• EUR/USD adds to Tuesday’s weakness below the 1.2200 mark.
• Next on the downside comes in the 1.2130 region.

EUR/USD accelerates the decline and breaches the 1.2200 support with some conviction.

The continuation of the downtrend does not face any support of relevance until last week’s lows in the 1.2130 zone (May 28). In addition, the loss of the short-term support line (off March lows) near 1.2210 seems to prop up further losses for the time being.

On the broader view, the constructive stance on EUR/USD is forecast to remain intact as long as it trades above the 200-day SMA, today at 1.1976.

The ongoing correction follows the recent bearish divergence in the daily RSI, as it did not confirm the recent peaks near 1.2270.

EUR/USD daily chart