EUR/USD approaches 1.37

EUR/USD has gotten even closer to a cluster of resistances at 1.3700/1.3669. After testing this supply area the currency pair is expected to decline and then probe one of the key supports at 1.35, which consists of the monthly S1 and 2013 low. And even though the monthly technical indicators are bullish, the major resistances are still intact, suggesting the risks are heavily skewed to the downside in the longer-term perspective.

As the Euro appreciated, the sentiment towards the currency worsened, since now more traders see it as overvalued, namely 59% of them. In the meantime, there is no significant difference between the buy (49%) and sell (51%) orders.