EUR/USD Price Analysis: Room for a drop to 1.1600

• EUR/USD bounces off new YTD lows near 1.1660.
• Further south emerges the 1.1600 neighbourhood.

Sellers do not abandon the euro, dragging EUR/USD to fresh 2021 lows in the 1.1665/60 band earlier on Thursday.

The continuation of the downtrend carries the potential to re-test the 1.1600 zone, where sits the November 2020 low.

The downside pressure, however, is expected to mitigate somewhat on a close above the 1.1800 area, ideally in the very near term. That said, the subsequent recovery could target the July tops in the area just above the 1.1900 yardstick, where it is expected to struggle.

In the meantime, the near-term outlook for EUR/USD is seen on the negative side while below the key 200-day SMA, today at 1.2004.

EUR/USD daily chart