EUR/USD refuses to close the gap

EUR/USD stayed largely unchanged yesterday near 1.32, even though the currency pair opened this week with a large 40-pip downside gap and therefore is likely to close it before testing 1.31. However, the bullish correction should not extend beyond the resistance at 1.33 (2013 Q4 low and monthly S1). Instead the price is expected to slip beneath 2013 Sep low and then target the last year's low at 1.2750.

The bullish SWFX market participants remain in majority—right now they take up 59% of the market. As for the pending orders placed 100 pips from the spot, the percentage of buy ones fell from 61 down to 43%.