EUR/USD tests major support at 1.3751/25

Last week the currency pair plunged through a series of significant supports, such as the monthly PP and 55-day SMA. Now the bearish momentum faces an even greater obstacle, represented by the 100-day SMA, monthly S1 and, most importantly, by the 22-month up-trend line. Accordingly, there is a good possibility of a rebound, though it might be stopped by the resistance at 1.3835/15. Still, most of the monthly technical indicators are bullish.

The Euro is closing in on a tough demand area, as evidenced by an overwhelming majority of the buy orders placed—78% 50 pips from the spot and 67% 100 pips from the spot. Meanwhile, the overall sentiment is nonetheless bearish—62% of open positions are short.