EUR/USD postpones decline

EUR/USD recovered some of the losses yesterday, but the market is nevertheless considered to be bearish. The reason is that the key resistances, such as the down-trend at 1.39, stay intact, but some of the most important supports, such as the 200-day SMA, have recently been broken. Accordingly, the currency pair is expected to target the monthly S2 at 1.3582, while at the same time being capped at 1.3733/1.3689.

The market is undecided, since the numbers of the long and short positions are nearly equal. Meanwhile, as the price rises, the selling pressure may increase—the share of sell orders 50 pips from the spot grew from 46% to 57%.