EUR/USD fails at 1.2962/79

Strong selling in the 1.2962/79 area did not allow EUR/USD to continue its rally from the 55-day SMA, which is in fact in danger of being breached today. If this is the case, the next line in the sand is supposed to be at 1.2853/41, although the dip is then likely to extend down to 1.2760/57, a formidable support level mainly formed by the 200-day SMA.

The difference between the numbers of long and short positions continues to increase, as the share of bearish traders grew up to 55% and the portion of bulls contracted to 45%. Still, there is no clear view of the traders' sentiment, being that buy orders are in majority, constituting 55% of all orders placed on EUR/USD.