EUR/USD penetrates rising support line

As suspected, the Oct 6-15 up-trend was no longer a viable support and the bears pushed the price beneath it. Now EUR/USD is headed towards weekly S1 at 1.2619, but this level is unlikely to keep the currency pair away from this year's low for long. On the other hand, the support at 1.25 will be much more difficult to breach, also considering that the monthly studies are still bullish, but eventually the bears are expected to gain the upper hand.

Apparently, the market does not consider the Euro to be trading near the bottom—only 53% of open positions are long. And the sell-off may accelerate—most of the orders (60%) are to sell the common currency against the Buck.