EUR/USD halts rally at 1.39

For the past eight weeks EUR/USD has been refusing to leave the vicinity of the major down-trend line and has been constantly trying to breach it, but still to no avail. However, should the currency pair succeed, there will be only a significant resistance area at 1.3958/37 standing between the spot price and the 2011 Oct highs at 1.42. Conversely, as long as 1.39 continues to stand its ground, the outlook will remain bearish, despite the technical studies.

Right now there are relatively less short positions than yesterday, as their share dropped from 70% to 68%. Still, the sentiment is strongly bearish. Meanwhile, the difference between the buy (45%) and sell (55%) orders is currently insignificant.