EUR/USD rebounds from 1.2380

The currency pair opened today with an upward gap after finding strong support at 1.2376 last week, represented by the weekly and monthly S1 levels. However, the upside may be limited by the resistance at 1.25, where the early October low coincides with the weekly pivot point. Yet another argument in favour of short-term Euro weakness is the technical indicators that are mostly bearish on the daily and weekly time-frames.

The bulls have lost their advantage over the bears. The share of the former (53%) is now only six percentage points larger than the share of the latter (47%). A similar picture is observed with the orders—52% to buy and 48% to sell the common currency.