EUR/USD targets 1.35

As it turned out, EUR/USD did not find enough demand at 1.3568/63, meaning the sell-off should now extend at least down to 1.35—the major support level at the moment. From there the currency pair will be able to launch yet another attack on the two-month down-trend at 1.36. However, as long and the 200-day SMA at 1.37 and long-term falling line at 1.3850 are intact, the overall outlook will remain bearish.

After wandering in the negative territory for the last 20 days, the sentiment has finally become positive. However, the difference between the shares of long (51%) and short (49%) positions remains insignificant.