EUR/USD at 55-day SMA

EUR/USD at 55-day SMA

'Although the euro zone has finally exited recession, it looks like any recovery is liable to be a low-flying one, particularly in light of the elevated unemployment numbers we saw today.' - Western Union Business Solutions (based on The Wall Street Journal)

Pair's Outlook

Pair was under pressure whole last week and started this week at 55-day SMA/Fibo 38.2% (beginning of July to middle of August move). Failure here would send the pair toward the 100 and 200 day SMAs and to 1.30 area afterwards. If, despite the weak signal, medium and long term technicals are correct we could see the pair testing 20-day SMA in the nearest future.

Traders' Sentiment

Bulls are continuing to strengthen their presence in the market. At the moment they account for 44% of market participants. That is a 2% increase during the weekend and a 4% in the last few days. However, bears are not planning to give up that easy as 54% of all pending orders are in their favour.