EUR/USD gravitates towards monthly R1

Despite the bullish indicators, the currency pair continues to drift away from the key resistance at 1.3758, which needs to stay intact for the long-term bearish outlook to remain valid. The nearest significant support is at 1.3678/60, mainly formed by the monthly R1. It is followed by an even tougher area at 1.3625/06, consisting of the 100-day SMA and the down-trend support line.

Regardless of the latest economic data, SWFX market participants are currently unwilling to alter their exposure towards the common currency or the greenback. Accordingly, traders' sentiment remains strongly bearish with respect to EUR/USD—34% of open positions are long and 66% are short.