• EUR/USD fades the earlier move to 1.1850.
• Sentiment remains sour while below July tops around 1.1880.

EUR/USD rebounds to the mid-1.1800s before running out of steam and return to the negative territory.

While the upside remains capped by the 1.1880/90 band, further pullbacks remain in the pipeline.

Against this, the breach of the 2020-2021 support line would be an important bearish event and carries the potential to accelerate losses to, initially, the Fibo level near 1.1760 ahead of the 2021 low in the 1.1700 neighbourhood (March 31).

Further out, the near-term outlook for EUR/USD is seen on the negative side while below the key 200-day SMA, today at 1.2002.

EUR/USD DAILY CHART