EUR/USD buoyed by demand at 1.25

The demand at 1.25 continues to underpin the pair, meaning we should not rule out a rally emerging from here. In this case the immediate obstacle will be represented by the monthly pivot point at 1.2630, which is followed by 2013 low and 55-day SMA at 1.2750. However, the main medium-term supply area is at 1.2850, namely the 23.6% Fibonacci retracement of the May-October sell-off, and the bias will be bearish as long as the Euro is below it.

Apparently, some of the traders lost their optimism with respect to the Euro even though its value did not change significantly—the share of long positions is five percentage points lower compared to 58% recorded yesterday.