EUR/USD stops at 1.2801/1.2796

A precipitous dip last Friday was only halted by support at 1.2801/1.2799, which still remains under the risk of being breached. This in turn would expose 1.2754/52, although it has a higher chance of withstanding bearish pressure, being formed by the 200-day SMA. A possible rally, on the other hand, should be limited by resistances at 1.2886 and 1.2923.

The gap between bullish and bearish traders is slowly disappearing, as the share of long positions has increased to 46% and the percentage of shorts has declined to 54%. As for the orders, 46% of them are to acquire the single European currency and 54% are to sell it against the greenback.