EUR/USD faces 2013 low

The bulls at 1.2750 repelled the first attack yesterday, but EUR/USD is likely to keep going lower. Once the currency pair closes beneath the 2013 low, the next target is going to be the 2012 Q4 low at 1.2660, while the 2012 low at 1.2050 is still considered to be the main long-term destination of the exchange rate. However, the technical indicators on the monthly chart highlight a significant risk of a turn-around.

While the attitude of the whole SWFX market towards EUR/USD is unchanged—62% of open positions are long, the share of orders to sell the Euro surged from 42 to 66%, meaning the sell-off may accelerate.