EUR/USD stays flat

Neither the ceiling at 1.3725 nor the floor at 1.3686 seem to be willing to give in. However, considering that EUR/USD has recently confirmed the major down-trend resistance near 1.3950 and subsequently breached an important up-trend support at 1.3750, the bias, despite the ‘buy' signals of the monthly technical indicators, is bearish. Accordingly, we expect the 200-day SMA to throw in the towel eventually.

The gap between the amounts of the long and short positions narrowed to the point where it is almost insignificant. The sentiment toward EUR/USD may be bearish but is weak, as only 56% of traders believe the Euro is going to depreciate.