EUR/USD Faces Monthly R1

EUR/USD Faces Monthly R1

'It's [the Euro] a bit overdone. It's a good level to be buying dollar. But so far, the market has gone the other way.' - Pierpont Securities (based on Bloomberg)

Pair's Outlook

Last week's accomplishment, namely a breach of 1.38, opens for EUR/USD a path towards 1.43, the 2010 highs. However, judging by the technical indicators on all relevant time-frames, the currency pair's upward momentum is weak at the moment. Moreover, it is currently facing the monthly R1, which seems to be unlikely to let the single currency to appreciate at an accelerated pace.

Traders' Sentiment

SWFX market participants did not change their attitude towards EUR/USD—a majority continue holding short positions, specifically 68% of them. There are also no significant fluctuations in the shares of buy and sell orders. At the moment they constitute 47% and 53% of the market respectively.