EUR/USD Price Analysis: Scope for extra decline near term

• EUR/USD drops sharply to the 1.0520 area on Friday.
• Further downside could see the 2022 low revisited.

EUR/USD adds to Thursday’s losses and prints new multi-week lows near 1.0520 at the end of the week.

The inability of spot to surpass the 4-month resistance line near 1.0730, the lack of surprise from the ECB and May’s US CPI were just too much for the European currency.

Against that, the continuation of the pullback could open the door to a probable visit to the 2022 low near 1.0350 (May 13).

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.1202.

EUR/USD daily chart