EUR/USD still trades flat

Although for a brief moment it seemed that EUR/USD is going to fall beneath the 55-day SMA, in the end the currency pair proved to be buoyant. Right now it is trading just below the key down-trend resistance line that should safeguard the supply area at 1.3960 and the overall bearish outlook on the Euro. Nevertheless, the technical indicators, especially on the longer-term time-frames, are strongly bullish, suggesting there is going to be a rally instead of a sell-off.

The distribution between the bullish and bearish market participants remains skewed in favour of the latter, as their share amounts to 67%. Meanwhile, the percentage of sell orders is growing, at the moment it is 63% (55% last Friday).