EUR/USD contained by 1.3711/1.3695

As expected, the resistance at 1.3711/1.3695 is keeping the bulls at bay and is likely to prevent further appreciation of the Euro. Therefore there is a good chance that EUR/USD will now start moving towards 1.3610/1.3597, the nearest significant support, formed by the 55-day SMA and the weekly S1 level. The sell-off, however, should extend beyond—at least down to the August high at 1.3451.

Largely due to inactivity of the price the distribution between the long and short positions on EUR/USD remains perfectly unchanged—61% of traders consider that the single European currency will outperform the greenback.