EUR/USD is testing 1.1400 after closing the first day of the week slightly lower. As FXStreet’s Eren Sengezer notes, the euro could weaken further if bulls fail to defend 1.1380.

1.1400 has become a pivot point in the near-term

“The pair is currently trading near 1.1400 – Fibonacci 23.6% retracement of the uptrend that started on January 6 and lasted for a week. In case this level turns into resistance, the next support aligns at 1.1380 (50-period SMA on the four-hour chart, Fibonacci 50% retracement). With a decisive drop below that level, additional losses toward 1.1350 (100-period SMA, Fibonacci 61.8% retracement could be witnessed).”

“On the upside, buyers could show interest in the common currency if 1.1400 proves to be stronger support than it appears. 1.1430 (20-period SMA, Fibonacci 23.6% retracement) could be seen as the hurdle on the upside.”