EUR/USD set to attack 1.1320 for second time

The bulls failed at the multi-month downtrend line (1.1320) on Friday and were thereby forced to commence a correction to the 1.1260 area. The first major support for this week is placed some 40 pips lower between 1.1223 and 1.1227 where the weekly pivot point coincides with the monthly R1. Given mixed aggregate daily technical indicators and bullish weekly ones, we foresee no immediate violation of this zone. Rather opposite, the market should give a chance to test 1.1320 once again, but another setback will put any potential recovery at risk. 

 

Both 50 and 100-pip pending orders are still set to acquire the Euro is exactly 52% of all cases, no shift from Friday. As for the distribution between long and short positions already opened in the SWFX market, here the latter (59%) substantially outpace the former (41%).