EUR/USD probes 1.3497

Yesterday EUR/USD was able to close above the August high. But now the single European currency is being sold off ahead of the major resistance at 1.3497, which is created by the weekly R1 and, more importantly, by the up-trend that connects the minima of July 9, September 6 and Nov 4. Intactness of this rising line secures the bearish outlook in the short and medium terms.

Even though the share of the long positions has fallen by two percentage points since the previous report, the market remains distant from being unanimous regarding the direction of EUR/USD—49% of traders expect the Euro to appreciate and 51% expect completely the opposite to happen.