EUR/USD plummets from 1.39

As soon as EUR/USD approached 1.39, it was immediately sold off down to the support are around 1.38, which consists of the monthly PP and 55-day SMA. And while this may potentially alleviate the downward pressure due to the zone's density, the currency pair is likely to keep moving south at least until it reaches the 100-day SMA and 22-month rising trend-line at 1.37. However, it should be noted that the monthly technical indicators are becoming more bullish.

Apparently, some of the traders realised the profits, as the share of short positions fell from 69% to 65% amid Euro's depreciation, but the currency is still largely considered to be overvalued. Meanwhile, the gap between the buy and sell orders is currently being reduced.