EUR/USD forms descending triangle

For the past three weeks EUR/USD has been forming a descending triangle, meaning the bears are slowly but surely gaining the upper hand over the bulls. This is also evidenced by the daily and weekly indicators. Accordingly, the currency pair is expected to breach the support at 1.3350, this will pave the way towards one of 2013 lows at 1.33. If the latter demand level is broken as well, the Euro will have a good opportunity to meet 2013 September low—1.31.

The sentiment towards EUR/USD in the SWFX market stays neutral—52% of open positions are long and the remaining 48% are short. But the distribution between the buy and sell orders is slightly skewed in favour of the latter that take up 56% of the total.