EUR/USD underpinned by 1.29

After a quick dip beneath 1.29, EUR/USD once again returned above the monthly S2. If this rally is going to develop further, the currency pair is likely to be capped by the resistance at 1.30, created by the monthly S1 and weekly PP. But if this is not the case, there is an even more significant supply area at 1.31, where the 2013 Sep low coincides with the weekly R1 and 20-day SMA. In any case, the target is the 2013 low at 1.2750.

As the Euro is currently consolidating, there are still no changes in the distribution between the bullish (59%) and bearish (41%) market participants. Though the share of the sell orders has managed to edge up from 59 to 68%.