EUR/USD challenges 1.2953

Support at 1.2953 has held the initial test, but will be unable to contain the pair should the attempt to breach it be repeated. In this instance EUR/USD may pull back down to 1.2827/04 (200 day SMA), but will nevertheless remain bullish, as an accelerated uptrend support has not yet been breached and is likely direct the price up to 1.3525, rally beyond which is not expected.

SWFX traders' sentiment index on EUR/USD is unchanged since yesterday, as majority of market participants continue to favour the U.S. Dollar, as 60% of positions are short and 40% are long on the pair. Signal provided by orders is contrarian, being that the share of buy orders (57%) is larger than the portion of sell orders (43%).