EUR/USD plummets to two-month low

By losing 80 pips or about 0.7%, the EUR/USD currency pair dropped the most in four days on Tuesday and closed the session below the 100-day SMA and weekly S1 at 1.1140. While the upward correction is likely today, we are still closely monitoring the ability of the bears to fix a consolidation below the aforementioned support area. By doing that, they will start aiming at the 200-day SMA, currently near 1.11, with the intermediate demand being the monthly S2 at 1.1126. Moreover, daily technical indicators are broadly backing this scenario at the moment. 

For the first time in two and a half months the total number of bullish markets participants equals to the percentage of the bears. In the meantime, pending orders remain heavily negative with respect to the EUR/USD cross.