EUR/USD Price Analysis: Still range bound near term

• EUR/USD starts the week deep into the red territory.
• Further downside opens the door to a retest of 1.1270.

EUR/USD fades Friday’s strong advance and returns to the sub-1.1300 area at the beginning of the week.

The lack of a firm direction in either way should prompt the pair to maintain the current consolidative move, at least in the very near term. The initial up barrier is located past the 1.1380 level (January 3), while sellers should meet contention near 1.1270 (January 4).

The broader negative outlook for EUR/USD is seen unchanged while below the key 200-day SMA at 1.1740.

EUR/USD daily chart