EUR/USD advances fourth day in a row

The European currency strengthened against the Buck yesterday, thus breaking the resistance at 1.27. Now EUR/USD is facing the 2013 low at 1.2740, but the rally may extend up to the 1.2850/00 area without threatening the overall bearish outlook. There the bulls are expected to be stopped by the monthly PP, 55-day SMA and 23.6% retracement of the Jul-Oct down-move. Meanwhile, the technical indicators are mixed—bearish on the weekly and bullish on the monthly charts.

The SWFX market remains indifferent with respect to the Euro—the shares of long and short positions are perfectly equal at the moment, even though the currency is not standing in one place.