EUR/USD confirms resistance at 1.25

As suspected, the Euro had insufficient bullish momentum to move past the resistance around 1.25 (weekly PP and Oct low). As a result, the currency is now headed towards a cluster of supports at 1.2350, where the weekly S1 coincides with the monthly S1 and a Bollinger band. If the price keeps falling further, the next target will be a combination of the weekly and monthly S2 levels at 1.2230, followed by the down-trend 100 pips lower.

The bulls have somewhat improved their position since the yesterday's report, but the difference between the numbers of long and short positions currently open remains insignificant, namely at eight percentage points.