EUR/USD touches July high, gains 110 pips

EUR/USD surged the most since Jul 29 on fears the Fed may not hike rates in September. As a result, the Euro pierced through a resistance zone at 1.1080, reached a daily high at 1.1216 (Jul high), but was forced to close below the 200-day SMA at 1.1154. While bulls are aiming at last month's high at the moment, they should be wary of the simple moving average, which may provide the pair with bearish momentum. As long as the Jul high is not confirmed, our outlook remains quite negative for the next 24 hours, as risks of a bearish correction are still in place.  

The share of bulls grew from 46% to 49% in the past 24 hours, while the portion of long orders in 100-pip range surged from 46% to 63%.