EUR/USD headed towards 2013 low

The currency pair lived up to the expectations by breaking out of the recently formed rising wedge to the downside. As the support at 1.29 is now out of the way, EUR/USD is free to descend lower, to the 2013 low at 1.2750, which is likely to be a difficult support to breach. If the bulls fail to stop the five-month sell-off here, the price will most likely fall down to the 2012 low at 1.2050 in the next few months.

SWFX market participants used the latest dip to acquire the Euro at more attractive prices. As a result, the share of long positions went up from 56 to 61%. Similarly, the percentage of buy orders increased from 42 to 54%.