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EUR/USD bounced off to test long-term downtrend

© Dukascopy Bank SA
"The euro's regained some of that lost ground. The reaction to the U.S. payroll number on Friday was one of broad dollar strength, and that may have given better levels for euro shorts, which is still an outstanding position, to take positions off the table as yields have risen."
- RBS Securities (based on Bloomberg)

Pair's Outlook
The common currency surged more than 200 pips on Monday, as the EUR/USD pair was provided with substantial bullish momentum around the monthly PP at 1.1089. This line is also strengthened by the 100-day SMA, and they altogether pushed the Euro upwards. At the moment the pair is testing a long-term downtrend around 1.13. However, only a successful consolidation above supply at 1.1360 (monthly R1) will negate bearish risks, which currently tend to remain in place. 

Traders' Sentiment
The gap between long and short positions at the SWFX market has been completely unchanged during the past 24 hours, as bulls are still holding 47% of all opened positions. 

© Dukascopy Bank SA

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