EUR/USD to break 1.29

EUR/USD seems to have formed a rising wedge pattern, which further implies depreciation of the European currency, along with the daily and weekly technical studies. However, in order to confirm its bearish intentions, the pair has to defeat the support at 1.29, represented by the monthly S2 and weekly S1, while at the same time stay beneath the resistance at 1.31. This will in turn expose the 2013 low at 1.2750.

The difference between the long and short positions is slowly but surely coming to naught, as it declined from 18 percentage points five days ago to 12 today. Meanwhile, the share of sell orders fell from 67 to 58%.