EUR/USD looks too heavy to rise

A rally after a test of 1.35 turned out to be quite shallow, as the currency pair was sold of as soon as it approached the monthly S1 and up-trend line. As a result, right now EUR/USD seems to be more inclined to move lower from here than to regain bullish momentum. While being contained by 1.36, the price is likely to break 1.35 and start targeting the monthly S2 and S3 at 1.3436 and 1.3369 respectively.

Although for a long time there was no meaningful difference between the amounts of long and short positions, the former started building up an advantage over the latter. Their shares are now accordingly 57% and 43%.