EUR/USD retests a recent high

EUR/USD retests a recent high

'We're in a real grinding risk-on environment. The tail risks in the euro zone seem to be mitigated because bond sales are doing well for them. There's more confidence in the market.' - Faros Trading LLC (based on Bloomberg)

Pair's Outlook

The major currency pair continues a bullish movement and is already breaching the latest high at 1.3393. Despite the fact the pair has slipped down from the upper Bollinger line to the weekly PP, it was just a healthy correction, which helped to avoid an oversold situation. The pair still remains above all important SMAs and in the upper part of the Bollinger bands, thus the bullish trend is very likely to be extended. The closest resistance levels are at 1.3450, the Bollinger line, and 1.3479, where the weekly R1 merges with an 11-month high.

Traders' Sentiment

SWFX market participants remain significantly bearish, as only 32% of positions are long and 68% are short. Pending orders situation is rather neutral, since the numbers fluctuate around an equilibrium.