EUR/USD is inclined to extend decline

Despite the strong downward momentum the support at 1.3383/69 managed to withstand the attack of the bears yesterday. And while there is a possibility of a pull-back up to 1.35 (three-month down-trend), the overall outlook is likely to remain negative for quite some time. The monthly S3 should eventually give in, which in turn will expose 2013 Q4 low near 1.33. The next major level could be the 2013 September low around 1.31.

The bulls have finally gained a small but nonetheless an advantage over the bears, as the former now take up 57% of the market. As for the orders, there are noticeably more commands to sell (62%) than to buy (38%) right now.