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

• EUR/USD remains under pressure above the 1.18 mark.
• Extra losses could see the 1.17 area re-visited in the near-term.

EUR/USD keeps the selling bias unchanged at the beginning of the week, although it has so far managed well to keep business above the 1.18 yardstick.

That said, while the ongoing leg lower should be regarded as temporary, it could extend further south and test the key contention zone in the 1.1700/1.1690 band (mid-August lows and a Fibo level). The bearish divergence in the daily RSI favours further weakness in the short-term horizon.

The bullish view on EUR/USD, in the meantime, is expected to remain unchanged as long as the pair trades above the critical 200-day SMA, today at 1.1186.

EUR/USD daily chart