EUR/USD erases Friday's gains

Behaviour of EUR/USD yesterday confirmed that the bias is to the downside, as the rally from 1.3350 failed to remain intact. Moreover, most of the daily and weekly technical studies are giving ‘sell' signals at the moment, being in favour of Euro's depreciation. The nearest support is represented by the weekly S1 and Bollinger band at 1.3347/39, but a more serious test of the downward momentum is to take place at 1.33—2013 Q4 low.

There is still no significant difference between the amounts of bullish (54%) and bearish (46%) market participants, probably because of consolidation taking place the last few weeks. Similarly, the shares of buy (51%) and sell (49%) orders are nearly equal.