EUR/USD to end the correction

EUR/USD is currently trading just beneath the two-month down-trend at 1.2660, meaning the risks are heavily skewed towards a sell-off. In this case the first target will be the monthly S1 at 1.24, followed by the monthly S2 at 1.22 and even in a longer-term perspective—the 2012 low at 1.2040. But if the rally keeps developing, we will expect the supply at 1.28 to prevent further appreciation of the Euro.

There is still no consensus among the market participants regarding the future of the single European currency—53% expect it to gain value and 47% plan to profit from its depreciation relative to the U.S. Dollar.