EUR/USD bounced off 1.3958

Soon after touching upon the up-trend resistance and monthly R1 at 1.3958 EUR/USD came under strong selling pressure, which returned the currency pair back below 1.39. Now the exchange rate is attempting to stabilise at 1.3845/29 (weekly PP and 55-day SMA), but could fall down to 1.3750/25 (rising trend-line, 100-day SMA and monthly S1) before we see any considerable bullish activity. Additional support will be at 1.3687/78—200-day SMA.

The sentiment of the market towards EUR/USD became less pronounced, but it is nonetheless bearish, as 64% of open positions are short. Meanwhile, the distribution between the buy and sell orders is 43% to 57% respectively.