EUR/USD is inclined to rally

Although it took EUR/USD a considerable amount of time and effort, the currency pair has finally risen above the monthly R1 level. Accordingly, the next target for the Euro is likely to be the monthly R2 at 1.4047. In the longer-term perspective the exchange rate even retains the potential to approach the 2010 highs at 1.43, the current location of the major up-trend resistance and the monthly R3.

A considerable majority of traders stay pessimistic with respect to the single European currency. Right now as many as 69% of them expect it to lose value against the U.S. Dollar. The distribution between the buy and sell orders is also quite stable—44% and 56% respectively.