EUR/USD to trade beneath 1.29

Although there is an immediate resistance level at 1.2786, represented by the monthly pivot point, the supply between 1.29 and 1.2850 is more likely to act as a ceiling this week. If the price approaches this area, we will expect a strong sell-off. Eventually the European currency should erode the support at 1.2750 (weekly PP and 2013 low) in order to open a path towards this year's lowest value at 1.25 and challenge it.

Neither the bulls nor the bears are able to gain an advantage over one another—their shares are still nearly equal at 49 and 51% respectively. But there is a little more buy orders (58%) in the market than there are to sell (42%).