EUR/USD breaks out of rising wedge

Despite the toughness of the support at 1.3754/25 (it was formed by the 100-day SMA, long-term up-trend and monthly S1) and the majority of the monthly indicators being bullish, EUR/USD preserved a downward momentum and breached the lower edge of the rising wedge to the downside. Accordingly, there is a good chance that the Euro will continue to depreciate, but the currency pair will have to push through an additional demand zone at 1.3682/72 first.

Though the sentiment towards EUR/USD is still bearish, it is improving day after day. The gap between the long and short positions has already narrowed to 14 percentage points, while it amounted to 40 percentage points just five days ago.