EUR/USD is committed to penetrating 1.08

EUR/USD still continues to absorb a substantial rally of the previous week. There is more room for a rise up to the 55-day SMA at 1.0984 in the nearest future. However, the broader outlook favours the bearish scenario for the moment. We see 1.08 as the main goal of the short traders, which is represented by July low and weekly pivot point. Failure here would imply extra downside move in the direction of the monthly pivot point at 1.0724 and eventually the April low at 1.0519. Meanwhile, trading volume tumbled yesterday, meaning market volatility is likely to be reduced.  

The share of SWFX bears decreased from 57% to 56% in the past 24 hours. On top of that, pending orders to buy the Euro vs US Dollar improved for both 50 and 100-pip ranges from the spot price.