EUR/USD halted by weekly PP

The Euro started this weak fairly energetic, but the weekly PP coupled with the 20-day SMA turned out to be enough to prevent the pair from realising its ambitions. Accordingly, the rate may soon re-test the support at 1.3481/75 (monthly S1 and 2014 low), as suggested by the daily technical indicators. And even though on the monthly chart the studies are mostly giving ‘buy' signals, as long as a down-trend at 1.39 is intact, the overall outlook will remain bearish.

While there are completely no changes in the sentiment, the market started to build up sell orders. Since the previous report their share increased from 52% up to 64%, meaning it is going to be harder for the common currency to outperform its counterpart.