EUR/USD closes in on 1.39

EUR/USD continues to advance. It has just breached the weekly R2 and is about to hit the down-trend resistance line that connects peaks of the past six years. In addition to that there is an up-trend resistance that can be drawn through the highs reached during the last two years. Accordingly, while we cannot completely rule out a possibility of a rally towards the 2011 highs, the probability of such an event is extremely low.

Traders continue building up shorts, but the Euro carries on grinding higher. The share of bears has already reached 71%, which is an unusually high percentage for EUR/USD. In the meantime, there is no notable difference spotted between the buy and sell commands.