EUR/USD pulls back

Following a massive sell-off after a test of 1.3784 the currency pair is undergoing a shallow bullish correction that should not extend far beyond the resistance at 1.3711/1.3689. This supply area is mainly formed by the February high and the monthly R1 and is expected to halt EUR/USD and subsequently send it towards the 100-day SMA and the monthly pivot point at 1.3531/01.

The sentiment of the SWFX market participants remains moderately bearish with respect to EUR/USD, with the share of short positions (61%) exceeding the longs by slightly more than 20%. Similarly, the buy orders are at a disadvantage compared to the sell ones (58%) around the spot.