EUR/USD performs a correction

Yesterday the currency pair reached the lower boundary of the bullish channel it has been trading within for the past 30 days. EUR/USD started forming the pattern after a precipitous rally encountered the 200-day SMA, since then the long-term moving average and May high have been violated. Accordingly, there is a high chance the Euro will appreciate relative to the U.S. Dollar, at least in the short run.

Today's distribution between the long and short positions is slightly different from the yesterday's figures, being that the gap narrowed. Now the share of bullish market participants amounts to 39%, while there are less bearish positions than before—61%. On average in its crosses the Euro is acquired in 42% of cases.