EUR/USD denied by 1.3091/40

Last week EUR/USD was unable to gather enough bullish momentum in order to break through a wide but nevertheless formidable resistance area at 1.3091/40, formed mainly by the 100 and 200-day SMAs. Accordingly, we would expect the currency pair to get off the current levels and move towards some of the recent lows, such as Apr 4 low at 1.2745.

There have been no structural changes in the sentiment of the market towards EUR/USD. The advantage, even though minimal remains in the hands of the bears who constitute 55% of the market. Meanwhile, the distribution between the buy and sell orders is 42% to 58% respectively.