EUR/USD to test 1.3726/11

Taking into account that the key resistance, namely the one formed by the October high and the multi-year down-trend at 1.3832/13, continues to stand its ground, the Euro is still more likely to depreciate from here than outperform the U.S. Dollar. The closest support is at 1.3726/11 (February high and monthly PP). Accordingly, it is expected to fall victim to the decline first.

The overall popularity of the Euro in the SWFX market increased (on average 42% of positions are long on it), but there are still more people (61%) willing to hold the greenback instead of the common currency. There are also more buy orders—their share within 100 pips from the spot rose from 33% up to 43%.