EUR/USD confirms monthly S2

EUR/USD is currently undergoing a bullish correction as a result of an encounter with the support at 1.3582 represented by the monthly S2 level. This rally, should it persist, is unlikely to extend beyond the weekly PP at 1.3658. Even if it does, there is a series of formidable resistances, with the key one standing at 1.39, that are deemed to be sufficient to nullify the upward momentum and rekindle activity of the bears.

While looking at the distribution between the long (51%) and short (49%) positions the traders seem to be inactive, there was a large increase in the sell orders placed on EUR/USD—from 59% up to 66% during the last 24 hours.