EUR/USD exhibits zero volatility

The U.S. Dollar gained ground against most of its counterparts, but failed to appreciate relative to the Euro. As a result, EUR/USD continues to stand motionless just above the 2013 September low at 1.31. And even though we still cannot rule out a two-figure rally to the 2013 Q4 low from here, the overall bias will nevertheless be to the downside. For now the 2013 low at 1.2750 is considered to be a long-term target.

The share of the bulls in the market declined, but the sentiment remains bullish—58% of traders are still long on the common currency. As for the orders, there are now significantly less commands to sell the Euro than yesterday (from 70 to 58%).