EUR/USD to challenge 23.6% Fibo

EUR/USD respected an accelerated up-trend that connects the lows seen on Oct 6 and 15, and the pair is now moving higher. The support at 1.2750 was also reinforced by the weekly PP and 2013 low. However, the upside potential of the Euro should be limited by the resistance between 1.2890 and 1.2850, which is created by the weekly R1, 55-day SMA and 23.6% Fibonacci retracement of the May-Oct down-move.

Traders' Sentiment

There has been a slight shift in favour of the short positions, as their share went up by two percentage points. Nonetheless, the difference between the amounts of the bulls (47%) and the bears (53%) remains insignificant.