EUR/USD faces tough resistance

EUR/USD continues to trade beneath the resistance at 1.3643/23, represented by 55-day SMA, monthly PP and two-month down-trend. Accordingly, the currency pair is expected to move down in the short run, towards the major rising support line at 1.3568/63. This level in turn can potentially initiate a strong recovery, as suggested by the monthly technical indicators, but a possibility of a dip to 1.35 before any distinct rally remains a possibility.

The gap between the amounts of bullish and bearish market participants remains insignificant, even though it is larger than yesterday—10 percentage points. The same situation is with the pending orders—46% to buy and 54% to sell the Euro.