EUR/USD underpinned by 1.3711/1.3684

Once the currency pair stepped down to the support at 1.3711/1.3684, most of the technical indicators on the daily charts turned bullish. Therefore there is still a chance EUR/USD will be able to revisit Oct 25 high. However, it is highly unlikely that the exchange rate will continue to rise further from there, the longer-term outlook on the price remains bearish.

The sentiment of the SWFX traders' is negative with respect to EUR/USD, being that 60% of open positions are short—only a marginal change from Friday's 59%. In the meantime, there was a notable shift in the distribution between the buy and sell orders. The share of the former surged from 45% by six percentage points and now they constitute a majority of the market.