EUR/USD confirms support at 1.26

Considering the trading early this morning, namely the EUR/USD bouncing off the recently breached down-trend, the market intends to keep pushing the price of the Euro higher. However, in order to confirm its multi-week bullish intentions, the currency pair will have to close above the tough resistance represented by the monthly PP and weekly R1 at 1.28. In this case the 55-day SMA around 1.2960 will most likely become the next target.

There is still indecision in the market—54% of open positions are long and 46% are short. As for the orders placed 100 pips from the spot, the 20-percentage-point gap contracted to an insignificant value of 2.