EUR/USD plummets

Yesterday factors other than technicals dominated the market, invoking ubiquitous strengthening of the U.S. Dollar. Initially, we were expecting EUR/USD to manage to climb up to the major down-trend resistance line at 1.3862 prior to starting a long-term decline. However, a change in the variable on tapering suggests the upside potential of the price may be limited by 1.3711 and now we should focus on the supports.

Although EUR/USD has been quite volatile recently, the distribution between the open long and short positions has not been subject to massive changes. The share of bulls has increased by four percentage points up to 38%, but the bears remain in a distinct majority in the market with 62%.