EUR/USD testing monthly R1

EUR/USD testing monthly R1

'If we are going to approach the euro zone and the euro area as a zone with a harsh line in the middle between Triple-A and non-Triple-A, between the north and the south, there's no way we're going to move forward and no way are we going to reach decisions that are so much needed.' - President of the group of euro area finance ministers (based on The New York Times)

Pair's Outlook

Pair managed to appreciate by 70 pips today and at the moment is testing monthly R1 at 1.3373. Readings of daily and weekly technicals allows to believe that there is no driver which could kick pair back in to bullish mood and as time passes and the probability of a pullback fades a way the pair should continue trading sideways. It is likely we might see pair inching up to 1.3400-level which seems unbreachable for a week or so.

Traders' Sentiment

Market sentiment is holding at the same spot since Friday-32% of traders are long and 67% are short on the pair. It does not seem we might see much of a change anytime soon as pending orders are almost evenly distributed between the bears and the bulls.