EUR/USD soars after hitting 1.35

Although at the end of the day instead of forming a red candle the currency pair closed higher, prior to that it managed to reach one of the major targets, namely the 2014 low at 1.35. Now, for the bearish outlook to stay valid, EUR/USD should not cross the 200-day SMA at 1.3693. Otherwise there will be a high possibility of the rally extending up to 1.3766/51, namely the current location of the 55 and 100-day SMAs.

While there was expected a shift in the distribution between the longs and shorts, perhaps, the recent events have not yet been fully digested, and the overall sentiment towards EUR/USD remains neutral as a result.