EUR/USD heads towards 1.31

Despite toughness of the demand area around 1.33 and ‘buy' signals on the monthly chart, the bears continued to push the price lower. The currency pair has already closed beneath the 2013 Q4 low and monthly S1, meaning the downward momentum is likely to persist in the coming weeks. The next significant support level is represented by the monthly S2 at 1.3450, followed by the 2013 September low at 1.31.

The share of bullish market participants continues to grow while the Euro is becoming cheaper. Right now 58% of open positions are long. Concerning the pending orders, there is currently no difference between the amounts of buy and sell ones.