EUR/USD corrects lower after testing recent highs

EUR/USD posted some decisive upward changes on Monday and tested recent lows/monthly PP at 1.10 for the first time since Jul 31. However, after touching a daily high at 1.1042 the pair decided to stop rallying and is now wavering below 1.10. With daily indicators staying neutral with respect to the short term perspectives, the Euro is not expected to decline substantially. Losses should be capped by 20-day SMA at 1.0970, even though a slump down to yesterday low/weekly PP at 1.0925 is also possible. 

 

The share of bulls increased one percentage point to 48% in the past 24 hours. Meanwhile, long pending orders in 100-pip range from the spot climbed considerably from 40 to 58%.