EUR/USD plans to attack 200-day SMA

EUR/USD advanced for a third trading day in a row on Monday and neared the monthly pivot point at 1.1021, which is succeeded by the 200-day SMA at 1.1045. Bullish momentum is strong, and it was able to reverse earlier intraday losses yesterday. We are now looking for an attack on the biggest moving average line, a spike above which will further increase upside risks. Nevertheless, daily technical studies continue to disagree with this idea, but to activate the bearish outlook the pair has to close below the 55-day SMA and weekly pivot point at 1.0974/58.

While the distribution between the longs and shorts is unchanged at 48-52%, pending orders are now set to acquire EUR against USD in 53-57% of all cases depending on the range from the current spot price.