EUR/USD probes 55-day SMA ahead of EU CPI

EUR/USD tested the weekly pivot point resistance line at 1.1346 on Tuesday; however, the bears took control over the market after US data showed better than anticipated inflation in April. Thus, we are looking for more dips over the next 24 hours and the pair has already attempted to attack the monthly S1 and upward-sloping 55-day SMA, both placed at 1.1288. In case the exchange rate closes under the latter, the outlook will diminish and the view will turn to the first weekly demand at 1.1246. Meanwhile, disappointing EU CPI data later on Wednesday may only fuel a decline of the single currency.  

57% of SWFX traders continue expecting that the Euro will depreciate against the Dollar. Moreover, only 42% (36% yesterday) of pending orders a 100-pip range from the spot see EUR/USD higher.