EUR/USD jumps to weekly PP

EUR/USD rallied yesterday, but appears to be too weak to sustain a prolonged recovery. At the moment the pair is facing the resistance at 1.3596/72, created by the weekly PP and 20-day SMA. If it manages to breach this supply area, the subsequent obstacle will be the 200-day SMA, which is highly unlikely to let the Euro step any further north. Accordingly, the outlook is bearish, with the support at 1.3513/1.3475 considered to be the next victim of the sell-off.

The SWFX market remains undecided regarding the future of EUR/USD, as evidenced by nearly equal numbers of long (52%) and short (48%) positions. Similarly, there is no difference between the amounts of buy (48%) and sell (52%) orders.