EUR/USD is likely to breach 200-day SMA

EUR/USD is still lacking momentum. From the upside the currency pair's movements are restricted by the monthly S1, but there are also additional resistances represented by the 100-day SMA and up-trend line at 1.3760 and by the 55-day SMA and monthly PP at 1.38. From the downside the demand is provided by the 200-day SMA, which acts as a reliable support since last year's September. Nevertheless, at the moment this level is under a substantial threat.

Only five days ago the sentiment the sentiment towards EUR/USD was moderately bearish, with 60% of traders expecting the Euro to lose value. Now there is only a minor difference between the amounts of long (46%) and short (54%) positions open.