EUR/USD plunged through SMAs

Although there were few reasons to believe EUR/USD will not be underpinned by a combination of the 100 and 200-day SMAs, the price turned out to be unable to surpass the resistance at 1.3217 and fell by 80 pips. Now the currency pair is trading below the moving averages, but has not yet breached the weekly and monthly S1 levels, meaning the potential for a recovery is still present. However, if 1.3120/05 gives in, the target may be set as low as 1.2745.

At the moment the most popular instruments in the SWFX market are the emerging and Scandinavian currencies, while among the G10 currencies the U.S. Dollar is the second most frequently acquired (in 54% of cases) after its Australian counterpart. Nevertheless, there are only 50% of short positions on EUR/USD.