EUR/USD is still contained by weekly S1

The bears were trying to send EUR/USD under the first weekly demand line (1.0853) on Wednesday; however, all attempts failed ultimately and the pair came back above 1.0850 by day-end. Despite that, our medium-term expectations are skewed to the downside and we see the weekly S1 being tested once again over the next 24 hours. By doing that, EUR/USD should eventually expose the Feb low at 1.0809 and the 1.07 cluster later. The outlook is again backed by daily technical indicators that are pointing to the downside.

The local high of 55% for the bullish side was touched Wednesday morning, but over the past 24 hours this number has declined to 51%. As for pending orders, they remain calm and show no massive changes for an eight day in a row. There is a 4-8% bearish advantage right now.