EUR/USD stalled ahead of 1.3726/19

EUR/USD managed to settle above the rising trend-line, meaning it is likely continue launching attacks on the nearby resistances, such as the monthly PP at 1.3719. However, while this level could in fact eventually give in to the buying pressure, the currency pair is not expected to advance beyond the long-term down-trend line at 1.3781, which ensures bearish outlook.

The reaction of the market to the surge staged on Jan 23 was delayed until the weekend, when a substantial amount of traders reconsidered the current situation and decided to short sell the Euro against the U.S. Dollar. As a result, 68% of positions are now short and only 32% are long.