EUR/USD underpinned by 1.29

There is likely to be a deeper correction than the one seen on Friday after a massive sell-off on Sep 4. The Euro will then resume the decline and reach its long-term target, namely the 2013 low at 1.2750. Considering there is a tough resistance at 1.30, represented by the weekly PP and monthly S1, the price might rally some 50-60 pips from today's open. Afterwards EUR/USD is expected to succeed at breaking the recent low and monthly S2 at 1.29.

Apparently, the traders were not eager to alter their positions this weekend, being that the distribution between the longs and shorts is exactly the same as last week—60 and 40% respectively. But at the same time, the share of sell orders increased, from 62 to 74%.