EUR/USD consolidates above the Fibo 38.2%

Pair started the week by trying to fall below the 200-day SMA. Today it seems it has consolidated above Fibo 38.2% (February to April, 2013, move) which is around 20 pips above the mentioned 200-day SMA. As suggested by the short term technicals it seems that pair is likely to advance further. In such case 1.32 might become the level which will fail the pair and should send it towards 1.30 where expectations of major market participants are consolidated.

 

Although majority of traders remain bearish on the pair they are loosing ground significantly. Number of bears in the market decreased by 3% since yesterday and at the moment they account for 55% of all traders. In addition to this, same share (55%) of pending orders are set to go long on the pair.