EUR/USD attacks 1.09 amid profit-taking

The Euro was bid on Tuesday, as market participants attempted to fix profit from a decline that occurred Friday and Monday. Additional signs of buoyancy are coming from the fact that EUR/USD is currently able to trade above an important resistance, namely the 38.2% Fibonacci retracement of the Oct-Nov decline and monthly R1 (1.0892). A success here should encourage more purchases in the next 24 hours, with the bulls aiming at 55-day SMA at 1.0980. Another supply is created by 200-day SMA at 1.1030.  

Distribution between the bulls and bears in skewed significantly in favour of the latter, as they are holding 57% of all positions. Pending orders are also Euro-short, even though 50-pip commands dipped on Tuesday, while 100-pip orders improved from 39% to 48%.