EUR/USD Price Analysis: Weakness expected to return below 1.1380

• EUR/USD alternates gains with losses in the low 1.1400s on Monday.
• Below the 4m line, the upside pressure could lose traction.

EUR/USD remains well supported in the 1.1400 neighbourhood following Friday’s strong retracement.

The inability of the pair to revisit the area of recent tops in the 1.1480/85 band (January 13/14) could spark fresh weakness in the near term. That said, below the 4m support line near 1.1380 the upside pressure should subside and sellers might return to the market and drag spot to, initially, the 55-day SMA, today at 1.1351.

The longer term negative outlook for EUR/USD is seen unchanged while below the key 200-day SMA at 1.1728.

EUR/USD daily chart