EUR/USD to trade sideways

Demand failed to overthrow supply at 1.3395/73, implying that the pair currently lacks bullish momentum in order to sustain its steep appreciation. Accordingly, there is an increased chance of a prolonged consolidation around the current levels, since daily and weekly technical indicators give mixed signals. Moreover, we cannot rule out a pullback down to the up-trend support line at 1.3124/01, which, in turn, has to withstand bearish pressure.

SWFX traders' sentiment is perfectly unchanged since Friday, when 32% of opened positions were long and 68% were short. Consequently, the market remains strongly bearish towards the pair. As for the orders, 51% of them are buy and the rest, 49%, are sell.