EUR/USD acknowledges 1.3086/42 as resistance

Yesterday EUR/USD has confirmed the zone that stretches from 1.3086 down to 1.3042 as resistance. This area is formed by the monthly R1, 200-day SMA, apart from the other minor studies, but does not elicit the expected response from the market, having only limited impact on the price action. Nevertheless, the medium-term outlook on the currency pair is negative, as it is likely to re-test 1.27 once again, given the current context.

SWFX traders' sentiment remains perfectly neutral towards the most traded currency pair, being that the amounts of long and short positions currently opened on it are equal. On the other hand, the sell orders are in a majority, constituting 57% of the total number of orders.