EUR/USD slowly grinds higher

Even though the monthly R1 level has been already breached, EUR/USD still struggles to gain bullish momentum. If the support at 1.3923/03 fails to keep the pair buoyant, a test of the up-trend line at 1.3839/31 will be expected to trigger buying and thus prevent an extension of the dip down to 1.3770. Accordingly, the monthly R2 at 1.4047 remains a near-term target.

Absence of activity in the exchange rate translates into static distribution between the long and short positions, which stays as 31% to 69% respectively. In the meantime, SWFX market participants seem to be building up sell orders near the spot, their share went up from 56% to 62%.