EUR/USD breaches the monthly R2

EUR/USD breaches the monthly R2

'The big trend of what's happening is a gradual unwinding of bearish euro positioning over the last month or two. That's what's been pushing up the currency a lot.” - Faros Trading LLC (based on Bloomberg)

Pair's Outlook

The single European currency seems to have decreased a pace of appreciation, but still firmly steps higher every trading session. Today the pair erodes the monthly R2 level at 1.3617, together with the upper line of the Bollinger bands. Also, the RSI indicator has reached an oversold zone, as the index has a value of 75 in a daily and of 67 in a weekly graph. Greater volatility will be seen after today's U.S. jobless report.

Traders' Sentiment

SWFX market players trade with bearish sentiments, as 33% of positions are bullish and the majority, 67%, have opened short positions. Pending orders segment is currently neutral, as 49% of waiting orders are for a long position and 51% for a short