EUR/USD underpinned by 1.3079/32

A down-trend support line, which has been breached on Jan 10, but before that remained intact since May of 2010, has proven to retain topicality to the market participants, delaying development of a dip. Accordingly, we can expect a rally, as suggested by the weekly technical indicators. However, they are bearish in a longer perspective and thus is would be reasonable to assume that the subsequent surge will not be extensive.

The levels of popularity of the Euro and U.S. Dollar in the SWFX market are similar and there is almost no difference between the shares of long (52%) and short (48%) positions on EUR/USD. The ratio of buy to sell orders is 48% to 52% respectively and thus is neutral as well.