EUR/USD rebounds from 1.29

The bears failed to push through the support at 1.29 (monthly S2), thus allowing a small upward correction to take place last Friday. The current rally may extend even further, but EUR/USD will most likely make a U-turn before rising above the monthly S1 at 1.30. Still, additional supply that safeguards negative for the currency pair outlook is supposed to be at 1.31, where the weekly R3 merges with the 2013 Sep low.

The SWFX market participants are moderately bullish with respect to the European currency—58% of traders expect it to gain ground against the Buck. Concerning the orders, a majority (63%) is to sell the Euro.