EUR/USD underpinned by 1.2360

As it turned out, the bears were not ready to break the defence at 1.2360 yesterday, and EUR/USD went up by 60 pips as a result. However, the upside potential is limited—there is a down-trend at 1.2525. Accordingly, we may expect elevated volatility in the nearest future, when one of these levels is breached. Considering the daily and weekly technical indicators, the risks are skewed to the downside.

The gap between the bullish and bearish market participants remains insignificant—only six percentage points, meaning the sentiment of the SWFX market towards the European currency is still neutral.