EUR/USD Price Analysis: Corrective decline could test 1.1700

• EUR/USD recedes from recent tops beyond the 1.20 mark.
• Extra losses could see the 1.17 area re-visited in the near-term.

EUR/USD met a tough resistance in the 1.20 neighbourhood on Tuesday, triggering a correction to the current 1.1850/45 band soon afterwards.

That said, while the leg lower should be deemed as corrective only, it could extend further south and test the key contention region in the 1.1700/1.1690 band (mid-August lows and a Fibo level).

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 1.1174.

EUR/USD daily chart