EUR/USD recovers in anticipation of the ECB meeting

Most traders are in a wait-and-see mode before this week's major event, and the market remains unwilling to break any of the important levels. And while the outlook will most likely stay bearish in any case, we can either see an immediate breach of 1.31 (2013 Sep low), if the ECB eases its policy, or a surge to 1.33—2013 Q4 low), if the monetary authority decides to postpone additional measures to a later date.

As one would expect, the market participants have been inactive lately—the distribution between the longs (58%) and shorts (42%) is exactly the same as yesterday. But the share of sell orders increased from 58 to 61%.