EUR/USD approaches monthly PP

The resistance zone created by the 55 and 100-day moving averages failed to contain bullishness of the currency pair and allowed it to peak at 1.3686 last Friday. Consequently, we should expect a test of the monthly pivot point at 1.3726/19, which is likely to end the recovery started at 1.3551/45—a point, where the monthly S1 merges with the six-month up-trend line.

There are still more short positions than there are long ones, being that the former take up as much as 59% of the market, even though EUR/USD proved to be quite resilient. Meanwhile, the share of sell orders plunged from 62% to 55%, as some of them were triggered during the latest price increase.