EUR/USD probes up-trend

EUR/USD did not manage to sustain the rally and plunged down to the up-trend support line that has been in force since the beginning of February. According to the technical indicators, the demand at 1.3839/30 is supposed to be enough to keep the currency pair afloat. However, if the selling persists, we will be looking at the down-trend support line at 1.3770 as the next target.

Apparently, some of the SWFX market participants used the latest decline in the Euro's price to square off their positions, which led to a drop in the share of shorts from 69% to 67%. Still, the sentiment with respect to EUR/USD remains noticeably bearish. Meanwhile, there has been a large increase in buy orders—from 38% up to 55%.