EUR/USD Price Analysis: Seems vulnerable while below 1.0800 confluence support breakpoint

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EUR/USD Price Analysis: Seems vulnerable while below 1.0800 confluence support breakpoint
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The EUR/USD pair ticks lower during the Asian session on Wednesday and moves further away from the weekly high touched the previous day.

EUR/USD trades with a mild negative bias, though the downside remains cushioned. September Fed rate cut bets keep the USD bulls on the defensive and lend support. The technical setup favors bearish traders and supports prospects for further losses. Spot prices remain on the defensive below mid-1.0700s, though the downside seems cushioned in the wake of subdued US Dollar price action.

Traders, however, might wait for a convincing break and acceptance below the 1.0700 mark before positioning for further losses. The EUR/USD pair might then accelerate the fall towards the 1.0650-1.0640 support zone before dropping to the 1.0600 mark, or the YTD low touched in April. Some follow-through selling should pave the way for an extension of the recent downtrend witnessed over the past two weeks or so, from levels just above the 1.0900 round figure.

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