EUR/USD loses momentum ahead of 1.3180/1.32

EUR/USD has refused to submerge after hitting a confluence of resistances at 1.3079/1.3121, being underpinned by the 200-day SMA. The currency pair is now attempting to challenge a more senior resistance down-trend line at 1.3180/1.32 that has been preventing long-term rallies from emerging since May 2011. Though this fact does not seem to discourage bulls who appear to remain determined, forecasts for 2013 (1.27 for Q2 and 1.25 for Q3) do not favour bullish scenario.

The share of bullish market participants has diminished even further. Long positions constitute 42% of the market, while short ones are 58% of it at the moment. The situation with orders is less negative, as 49% of them are buy and 51% are sell orders.