EUR/USD hovering at 1.28

Pair started the week pretty much where it finished the last one—slightly above 1.28. It is worth mentioning that Thursday and Friday sell off indicates that there is a significant downside risk associated with the pair. However, pair should be trading sideways for the time being, and fall lower in the second part of the week. Short term rallies (buy signal from the Stochastic in the short term) should be capped by 1.30.

Situation in the market remains rather uncertain after the weekend as well. 53% (+2 after the weekend) of all open positions belong to the bulls, however, 52% (+1% after the weekend) of all pending orders are posted by the bears.