EUR/USD retreats from December downtrend

EUR/USD traded in a limited range on Monday amid lack of fundamental drivers throughout the day. By the end of American session the pair dipped down to the weekly pivot point at 1.0860. Strengthened by 20-day SMA, this support is expected to contain initial losses, unless any shocks happen. Additional demand is represented by a dense technical area at 1.0830/00 (55-day SMA, monthly PP). Given that the first major resistance is a two-month downtrend at 1.0922, we expect EUR/USD to hover in a tight range in the next 24 hours. 

 

Majority of the bearish traders over bullish is unchanged at ten percentage points, while 100-pip pending orders are equally divided between the long and short market participants today.