EUR/USD Price Analysis: The 1.20 level still caps the upside

• EUR/USD regains the smile following two pullbacks in a row.
• Gains remain so far limited by the key 1.20 yardstick.

The recent bounce in EUR/USD off YTD lows near 1.1830 (March 9) met a tough barrier in the vicinity of the psychological 1.20 hurdle so far, triggering a corrective leg lower afterwards.

The inability to retest/surpass the 1.20 area in the near-term could allow for the continuation of the offered bias and motivate EUR/USD to attempt another visit to the 2021 lows in the 1.1835/30 band (March 9). This area of lows is reinforced by the proximity of the key 200-day SMA, today at 1.1834.

Below the latter, potential losses are expected to gather further steam with the next target at the 2008-2020 support line in the 1.1600 area. This scenario, however, is not favoured for the time being.

EUR/USD daily chart