EUR/USD ready to violate 100/55-day SMAs

Yesterday EUR/USD failed at the 50% Fibonacci retracement of the Jul-Aug uptrend around 1.1260. The pair therefore slumped down to the 200-day SMA 1.1170, while a decline is continuing on Thursday. Penetration of both 100 and 55-day SMA can be expected, taking into consideration bearish daily technical indicators. Meanwhile, very soon we are going to observe all 55, 100 and 200-day SMA crossing each other. The 55-day SMA is already testing the 100-day SMA to the upside, which implies a change in sentiment towards more positive momentum in overall development of EUR/USD.

The share of bulls on the market decreased from 53% to 51%. In the meantime, pending orders in 100-pip range from the spot are still equally divided between bulls and bears.