EUR/USD undergoes bullish correction

Despite a plethora of ‘sell' signals on the daily and weekly charts, the Euro is currently recovering, as the support at 1.3150, represented by the monthly S2, proved to be quite strong. Given the absence of any significant resistances nearby, the currency is now likely to move towards 1.33, where it is going to meet the monthly S1 and 2013 Q4 low. The supply there will be expected to limit the gains and initiate a sell-off to 1.31.

The bullish market participants are slowly but surely increasing their advantage in numbers over the bears—the gap amounts to 24 percentage points. But there are almost no buy orders left—their share is now merely 24% (37% yesterday).