EUR/USD tests monthly S2

The selling pressure is likely to somewhat subside, considering that the currency pair is approaching a potentially tough support at 1.3582, consisting of the monthly S2 and weekly S1. Nevertheless, EUR/USD is expected to preserve the bearish momentum and eventually erode this level in order to open a path towards the next monthly pivot point at 1.3492. In the meantime, the upward spikes are to be limited by the 200-day SMA at 1.3689.

Although at the moment the difference between the long and short positions is insignificant, but little by little the bulls (51%) are crowding out the bears (49%). In the meantime, 59% of orders are to sell the Euro against the buck.