EUR/USD set to decline

The sell-off might not have been as strong as expected after a breach of the support at 1.35, but the risks are still considered to be heavily skewed to the downside. And even though a half of the monthly studies are pointing upwards, the path of least resistance currently leads South, towards the monthly S2 and S3 levels at 1.3436 and 1.3369 respectively. Meanwhile, the long-term target is 1.28—2013 lows.

The bulls are currently in a majority with 55% of the market, but their advantage over the bears (45%) remains insignificant. In the meantime, the percentage of orders placed to purchase the Euro dropped from 57% down to 47%.