EUR/USD gravitates towards 1.39

There are now even more ‘buy' signals than yesterday, even though the currency pair is facing a tough resistance represented by the multi-year down-trend. Accordingly, unless EUR/USD manages to close above 1.39, the bullish potential implied by the technical indicators should not be realised. Instead the exchange rate is expected to move south and test some of the nearby supports, such as the 100-day SMA and up-trend at 1.3743/25.

As the exchange rate stays largely unchanged, the SWFX market participants are neither increasing nor reducing their exposure towards the Euro. The share of the short positions is 68% and the share of the sell orders is 63%.