EUR/USD's surge remains brittle

Against all odds the single European currency continues to appreciate. The nearest target resides at 1.2953, followed by 1.3020, and for the time being there are no signs that EUR/USD is going to terminate its rally. However, if to take heed of forecasts for the fourth quarter, the Euro appears to be overvalued according to the banks' estimates, and therefore remains susceptible to a dip.

The portion of long positions has fallen even further, being 38% at the moment, whereas bears constitute 62% of the market, revealing negative towards EUR/USD sentiment. As for the orders, 51% are to buy the Euro and 49% are to sell it against the greenback.