EUR/USD Price Analysis: Corrective downside could re-test 1.2000

• EUR/USD extends the leg lower to the 1.2080/75 band.
• The pair comes under pressure following overbought conditions.

EUR/USD extends the knee-jerk to the 1.2080 area at the beginning of the week amidst profit taking and a mild recovery in the dollar.

The positive stance in EUR/USD, however, remains unchanged and allows for the continuation of the uptrend once the ongoing correction is over. That said, a probable move to 1.2200 stays well on the table for the time being.

A surpass of 1.2200 should shift the focus to 1.2413 (April 2018 high) ahead of 1.2476 (March 2018 high). Further north emerges the more relevant barrier at the 2018 high in the mid-1.2500s.

Looking at the broader scenario, extra gains in EUR/USD are likely while above the critical 200-day SMA, today at 1.1437. The 200-week SMA near 1.1440 also reinforces this view.

EUR/USD daily chart