• EUR/USD corrects lower after advancing past 1.1300 on Friday.
• If the selling impulse accelerates, then the pair could retest 1.1186.

EUR/USD gives away part of the gains recorded on Friday’s strong rebound to the area further north of 1.1300 the figure.

If Friday’s top is not cleared in the very short term, then sellers could return to the market and force the pair to resume the downside. Against this, another visit to the 2021 low at 1.1186 (November 23) should not be ruled out yet.

The probability of further losses remains unchanged as long as EUR/USD trades below the 2-month resistance line (off September’s peak) near 1.1570. In the longer run, the offered stance in spot is expected to persist while below the 200-day SMA at 1.1831.

EUR/USD daily chart