EUR/USD is short-term bullish

Since the single European currency has already closed the bullish gap and the support consisting of the monthly PP and 55-day SMA is intact, there is still a chance for a rally. Moreover, most of the technical indicators are currently giving ‘buy' signals. Nevertheless, the longer-term outlook is considered to be bearish, mainly due to the presence of the falling trend-line at 1.39, which is supposed to guide the currency pair south.

The SWFX market participants did not change their attitude towards EUR/USD during the weekend. Just as last week, 35% of positions are long and 65% are short. In the meantime, the share of sell orders 50 pips from the spot retreated from 61% to 54%.