EUR/USD turned around ahead of up-trend resistance

After approaching the up-trend resistance line and monthly R1 level at 1.3958, EUR/USD turned around and closed beneath the weekly R1. Nevertheless, most of the technical indicators are pointing north, implying that the bulls are going to push the price higher from here. The monthly R2 and weekly R3 at 1.4048/28 could be one of the intermediate targets, while eventually the exchange rate could rise up to the 2011 highs at 1.42.

The level of short positions open in the market stays elevated—69%. This is slightly above its 10-day average of 67.5%. Meanwhile, the difference between the buy (47%) and sell (53%) orders 50 pips from the spot is currently negligible.