EUR/USD slows down at 55-day SMA

Now solely the 55-day SMA at 1.3317 is separating the spot price from a key support area at 1.3274/56. This zone, apart from being the up-trend line that stretches from Jul 24, is the neckline of a head and shoulders pattern. Accordingly, if it does not withstand the bearish pressure, the dip could rapidly extend down to 1.3042. However, this is a less likely scenario than continuation of Euro's appreciation.

Even though the amount of short positions (57%) is exceeding the number of long ones (43%), the advantage is not yet decisive, meaning that the sentiment of the market is rather neutral than bearish. Moreover, there is a majority (65%) of those traders that are willing to purchase the Euro against the U.S. Dollar.