EUR/USD closes in on 1.39

As suspected, EUR/USD did move north, and it is already supposed to feel the pressure coming from the long-term down-trend resistance. This is evidenced by a change in the technical indicators, which have become mixed on the daily time-frame. And while the downside risks increase with every new pip, we cannot completely rule out a breach of 1.39, which would most likely mean the Euro heading to the 2011 highs at 1.42.

The selling pressure intensified and the sentiment towards EUR/USD notably deteriorated. The share of short positions grew from 65% up to 69%. Similarly, the number of sell orders also increased 50 pips near the spot—from 54% to 65%.