EUR/USD headed toward 1.31

The currency pair continues to grind lower and is about to hit the monthly S2 level, the last significant obstacle standing before 1.31. Here, despite the 'sell' signals on the weekly time-frame, the bears might take a break and let the Euro make an upward correction, which in turn is supposed to end before the price rises above 1.33. And the ensuing bearish wave will have a good possibility to extend down to 1.2750—2013 low.

As the single European currency loses value, there are more and more traders willing to enter long positions—their share has already increased to 61% of the market. At the same time the percentage of buy orders is falling—right now it is at 37% (43% yesterday).