EUR/USD faces strong demand at 1.35

Last week, despite the pair breaching a long-term down-trend, the bulls successfully defended the key level at 1.35, thus prodding EUR/USD to return to the monthly S1. However, given the number and density of the supply lying overhead, there is little chance the Euro will be able to sustain its current recovery. The price is likely to turn around either at 1.3563/53 or 1.3630/1.3598 and then pierce through 1.35, thereby confirming its bearish intentions.

There are still no significant changes observed in the sentiment of the market towards EUR/USD—54% of traders are long and 46% are short. On the other hand, there has been a major increase in the sell orders near the spot—from 35% to 65% (50 pips around it).