EUR/USD bounces off 1.2580

Although EUR/USD appeared to be in a good position to advance towards the monthly pivot point after finding the support at 1.2360 (monthly S1), the bears at 1.2580 forced the pair to retreat. Yesterday's sell-off also showed the market started to respect a new downward-sloping resistance line that may be drawn through the highs on Aug 15 and Nov 17. Consequently, the Euro is expected to return to this year's low.

The distribution between the longs and shorts is exactly the same as yesterday—53 and 47%, respectively. Meanwhile, the share of the buy orders slightly but increased from 53 to 56%, meaning the pair may be approaching a demand area.