EUR/USD makes contact with 1.31

The pair has finally arrived at 1.31 (2013 Sep low and weekly S1), a key to the last year's low at 1.2750 (also monthly S3). As long as the former support is not broken, there will still be a considerable risk of an upward correction to 1.33 (2013 Q4 low). In the meantime, while the daily and weekly studies are mostly pointing downwards, a majority of the monthly indicators implies appreciation of the European currency.

Considering the share of buy orders left in the market, merely 19%, it is unlikely that the 28-percentage-point advantage of the bullish participants in the SWFX market is going to increase any further in the nearest future.