EUR/USD quickly retreats from 1.3000/20

The currency pair has slipped ahead of a major down-trend resistance line at a preceding level that consists of a recent high and a Bollinger band at 1.3000/20, thus forming a bearish engulfing pattern yesterday. If the current dip is only a temporary downward correction, than the nearest supports located at 1.2899/97 and 1.2813/1.2775 are to prevent it from extending any further. Otherwise the 200-day SMA at 1.2711 will be exposed.

A majority of positions opened (57%) on EUR/USD are short, although the advantage over bulls, who constitute 43% of the market, is not yet notable. On the other hand, the ratio between buy and sell orders is 61% to 39%, accordingly.