EUR/USD takes a break near 1.12

Weak US personal spending data helped the EUR/USD cross to add value on Monday, as it closed below 1.12 after testing the 23.6% Fibonacci retracement of the March 2016 uptrend at 1.1220. The cap is being provided by the weekly pivot point at 1.1197, but bullish daily and weekly technical indicators raise hopes that the common currency will breach its initial resistance area today. A failure here should diminish the pair's optimism. We see the 1.1060/40 zone as a vital support, where 55/200-day SMAs are joined by the March 16 low.  

Now the difference between the bulls and bears is only eight percent, down from 10% on Monday and 12% back on Friday. In the meantime, reliably more than 50% of all pending orders are now set to acquire the Euro against the Greenback.