EUR/USD supported by monthly S1

After three days of losses EUR/USD has finally found support at 1.3250, represented by the monthly S1 and weekly S3. However, unless the Jackson Hole changes the overall picture fundamentally, the rally is likely to be shallow, given there are now tough resistances at 1.33 and 1.3350. Once the current correction is stopped, the currency pair will be expected to resume moving towards the 2013 September low at 1.31.

While there was no change in the distribution between the long (58%) and short (42%) positions, the share of sell orders placed 50 and 100 pips from the spot price leaped from 54 and 50% to 75 and 69% respectively.