EUR/USD to challenge 1.3631/09

EUR/USD continues to move lower while being pushed by the strong selling pressure that emerged after a test of the major down-trend line at 1.3831/00. At the moment the currency pair is about to hit the support at 1.3631/09, formed by the weekly S2 and the 55-day SMA, but is unlikely to start a significant bullish correction until the 100-day SMA at 1.3530/00 is reached.

Presently, most of the traders, namely 60% of them, foresee further depreciation of the common currency relative to the greenback. And while the ratio between the longs and shorts is largely unchanged compared to the previous report, the share of buy orders dropped from 64% to 52%.