EUR/USD restrained by monthly R1

EUR/USD remains capped by the supply at 1.3923/03, which is mainly created by the monthly R1 level. Accordingly, there is a risk that the currency pair may slide from here down to 1.3839/10, specifically the up-trend support line. Then it will be in a better position to re-challenge and subsequently overcome the mentioned resistance zone.

A substantial majority of the SWFX market participants continue to consider the common currency as bearish compared to the U.S. Dollar—only 31% of open positions are long and 69% are short. Meanwhile, 50 pips from the spot the share of orders to sell the Euro dropped from 59% down to 54%.