EUR/USD plummets 160 pips

The Euro depreciated faster than expected, effortlessly piercing through a supposedly tough support at 1.13. EUR/USD is now trading as low as 1.12, a level that can potentially hold the rate for a while, but is likely to be broken eventually. This will pave the way for a decline to 1.11, namely this year's minimum, which is also expected to become the victim of the bears in the end, but may well trigger a rally to 1.13/1.14 before giving in.

A massive sell-off failed to change the sentiment in the SWFX market, which remains largely undecided, with 51% of positions being long and 49% being short. The share of the orders to buy, on the other hand, soared from 48 to 65%.