EUR/USD closes in on 2013 low

The European currency is still headed South, where it is about to meet one of the key levels, namely the 2013 low. This support, given its significance, may trigger profit-taking. The resulting rally may potentially extend up to the resistance at 1.31 without compromising the overall bearish outlook. But once the demand area at 1.2750 is penetrated, the 2012 low at 1.2050 will become the next long-term target.

The present distribution between the bulls and bears is exactly the same as last week—60% of market participants believe the common currency is going to appreciate. On the other hand, the share of sell orders jumped from 63 to 67%.