EUR/USD's gains capped by monthly S1 at 1.0768

On Monday the most traded FX cross has tried to recover Friday losses, but it failed to come back at least above 1.0750. In addition to that, important bearish support was provided by the monthly S1 at 1.0768. We do not expect a rally to prolong any further in the medium term, while stronger US Dollar will weigh on this currency pair. In the near term bearish pressure is also likely to remain limited, owing to lack of fundamental drivers on Tuesday. Bears are focused on Apr low at 1.0519, followed by March low at 1.0461.

On Tuesday bulls and bears are holding the equal number of open positions in the SWFX market. Pending orders in 100-pip range, however, are set to sell the Euro in 66% of all cases.