EUR/USD probes monthly R1

For the time being the support at 1.3691/78 resists further decline of EUR/USD, as the Euro was sold off soon after hitting the long-term down-trend line at 1.3760. And even though the daily and monthly studies are suggesting that the currency pair is bullish, we are inclined to believe that the monthly R1 is going to eventually give in, thus paving the way towards the 55-day SMA.

Though yesterday the share of bullish SWFX market participants somewhat decreased, today it is already higher than the 10-day average (66%), namely at 67%. In the meantime, the percentage of sell orders placed 100 pips from the spot contracted from 61% down to 58%.