EUR/USD to continue trading below 1.10

EUR/USD cooled down on Friday, by falling from Thursday's peak at 1.0980 to reach the 1.0882 mark by the end of last week's trading. In the short term the bears are expected to aim at the weekly pivot point, which guards the July low at 1.0808/1.0795. Consolidation below this area should pave the way toward the monthly pivot point at 1.0724. The medium term outlook remains broadly bearish, as the Fed meeting is looming and weekly technical indicators are pointing confidently downwards.  

The bullish portion of SWFX positions accounts for 43% today, down five percentage points over the weekend. Meanwhile, pending orders to acquire the Euro in 50 and 100-pip ranges from the spot are now accounting for only 32% and 36%, respectively.