EUR/USD disregarded resistance at 1.2660

A day ago it seemed as if the down-trend at 1.2660 would prevent the price of the Euro from grinding higher. However, as it turned out, the pair did not turn around yesterday. Instead it closed 100 pips above the resistance, and EUR/USD is already testing the supply implied by the 2013 low and 20-day SMA. But the rally can now extend even higher. The next cluster of resistances is near 1.28, created by the monthly pivot point and weekly R2 level.

Despite a considerable increase in the common currency's value, the market participants appear to ignore this change—the distribution between the longs and shorts is nearly the same as yesterday—52 and 48% respectively.