EUR/USD can rise to 1.31

Right now EUR/USD is facing the resistance at 1.2740 represented by the 2013 low. If the supply here is insufficient to prevent further appreciation of the Euro, the next level to try to stop the pair will be 1.2780, where the weekly R1 merges with the monthly PP. But overall there is a substantial chance of a rally up to 1.31, where the six-month down-trend coincides with the 38.2% Fibonacci retracement of the May-Oct sell-off.

Although EUR/USD jumped more than 80 pips yesterday, there was almost no reaction from the market—it is still neutral with 51% of traders being long and the remaining 49% being short. Concerning the orders, 51% are to buy and 49% are to sell the bloc's currency.