EUR/USD challenges 1.3242/19

For now EUR/USD is supported by the area at 1.3242/19, but we are more likely to see lower levels than a strong rebound from it. Once May 1 high is eroded, the pair should recommence the decline and slide down to a combination of the 55 and 200-day SMA at 1.3094/76. Moving further south from there may prove to be impossible for the price in the medium term.

The current distribution between the long and short positions opened on EUR/USD is 40% to 60% respectively, meaning that the sentiment is strongly bearish. This reflects the fact that on average the single currency is bought less frequently than USD, in 42% of trades against Dollar's 56%.