EUR/USD Price Analysis: Solid resistance emerges at 1.0786

• EUR/USD reverses the initial optimism and returns to 1.0720.
• The resistance line around 1.0790 caps the upside so far.

EUR/USD now trades slightly on the defensive, although it manages well to keep the trade above the 1.0700 mark on Monday.

The surpass of the 3-month resistance line, today around 1.0765, should see the downside pressure subsided and allow for a probable move to the May top at 1.0786 (May 30). Further up appears the weekly peak at 1.0936 (April 21).

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.1226.

EUR/USD daily chart