EUR/USD plummets to 1.3770

As it turned out, the 1,5-month up-trend support line was not enough to prevent extension of the latest dip. Instead, the currency pair continued the decline until it reached the demand area at 1.3770, consisting of the recently breached falling trend-line and the weekly S2 level. Considering the weekly and monthly technical indicators, the Euro is unlikely to fall any lower; however, the long-term forecasts suggest the outlook is heavily bearish.

As the common currency is rapidly depreciating, more and more bearish traders take profits and exit the market, resulting in the declining share of short positions. Five days ago their share amounted to 69%, now it is 65%.