EUR/USD denied by monthly R1

EUR/USD did not manage to pass through the supply zone formed by the weekly and monthly R1 levels and retreated to the weekly pivot point at 1.3833. Accordingly, the downside risks are now elevated. The currency pair may slide back to 1.38 before it follows the scenario suggested by the daily and monthly indicators, namely advance further north.

The bearish with respect to the single European currency sentiment strengthened, as the percentage of open short positions increased from 66% up to 69%. Meanwhile, there was almost no change observed in the distribution between the buy (38%) and sell (62%) orders 100 pips from the spot price.