EUR/USD Price Analysis: Upside looks capped by the 55-day SMA

• EUR/USD reverses the positive start of Tuesday’s session.
• Further gains look initially limited by the 55-day SMA near 1.0615.

EUR/USD fades part of the recent 2-day advance and quickly retreats to the low-1.0500s on Tuesday.

In the very near term, occasional bullish attempts need to surpass the 55-day SMA near 1.0615, which also coincides with the weekly highs. If surpassed, then the next hurdle of note emerges at the 4-month line near 1.0660. The pair is expected to see its downside pressure alleviated on a close above the latter, with the next target at the June top at 1.0773 and the May peak at 1.0786.

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.1125.

EUR/USD daily chart