EUR/USD slips beneath 55-day SMA

After negative data on Chinese manufacturing industry and investors' speculation on Europe's key interest rate cut, the major currency pair dropped from the 200-day SMA at 1.3055 to the weekly S1 level at 1.2972. EUR/USD easily overcame the 20-day and the 55-day SMAs. Today the pair renews bullish sentiments and checks the 55-day moving average from above. A successful settlement below it would open a free area for a downside movement at least till 1.2897, where the Bollinger band intersects the monthly PP.

Recent depreciation does not have any substantial effect on distribution of opened positions. The sell side maintains a weak majority, as it has 51% of positions. Pending orders market is bearish with 53% of sell orders.