EUR/USD respects resistance at 1.28

Yesterday the market confirmed presence of concentrated supply at 1.28, where the weekly R2 merges with the monthly pivot point, by retreating to 1.2660. But if the bulls keep pushing the price higher nonetheless, the next significant resistance will only be at 1.30—the current location of the monthly R1 and 55-day SMA. A little further to the north, namely at 1.31, is a two-month down-trend, which is the key to the medium-term outlook.

Neither poor nor good performance of the Euro this week had any effect on the attitude of the market toward the currency. The gap between the amounts of long (53%) and short (47%) positions remains negligible.