EUR/USD inclined to rise

For the past three months EUR/USD has been trading between the resistance line at 1.3219 (May 2 high) and a formidable level at 1.2745 (Apr 4 low). Being that recently the currency pair has bounced off the support, we would look for a rally with a target at 1.3219/1.3194, although there is a number of serious obstacles the price will have to overcome, namely monthly pivot point at 1.3038 and 100 and 200-day SMAs at 1.3079/68.

Over the weekend the situation in the market has changed in favour of the bears, who now constitute 54% of the total amount, although the advantage is not large enough to say that the sentiment towards EUR/USD is negative. The distribution between the buy and sell orders is 44% to 56%.