EUR/USD plunges after testing 1.16

First part of Tuesday was distinctly bullish for the Euro, as this currency skyrocketed to another multi-month high above the 1.16 mark. However, as soon as it neared the weekly and monthly R2 resistance lines at 1.1619/26 the bears have finally decided to develop momentum. It turned to be successful, because EUR/USD closed the session with a 38-pip loss just under the 1.15 mark. If the bearish impetus is sustained, we are likely to observe a quick return down to the weekly and monthly pivots at 1.1376. However, while trading above them the outlook will remain largely optimistic.  

Six out of ten SWFX market participants are holding short positions on the Euro. Alongside, the majority of pending orders are now set to get rid of the European currency in favour of the Greenback.