EUR/USD erodes 1.3506/1.3492

Although the currency pair has stopped at 1.3506/1.3492 for now, it still seems to be inclined to move lower after a strongly bearish week. Accordingly, a cluster of supports at 1.3451/22 is currently in danger of being breached, even though the weekly technical indicators are largely giving ‘buy' signals. Once this area gives in, the 100-day SMA and thee weekly S1 at 1.3396/75 will become exposed as well.

Being that over the past week the overall popularity of the Euro has increased and the attractiveness of the U.S. Dollar among the SWFX market participants has at the same time decreased, currently the sentiment towards EUR/USD is neutral—52% of positions are long and the remaining 48% are short.