EUR/USD erased three-day losses

Bullish impetus created by weaker US CPI data and quite dovish Fed meeting minutes sent the most traded cross above 1.11 on Wednesday. A daily surge amounted to 90 pips, as EUR/USD is now trading above the Aug 16 high. With daily technical indicators still pointing to the upside, there is a possibility the Euro will continue rallying in the short-term. However, immediate resistance is represented by 200-day SMA at 1.1132, and unless this mark is penetrated our outlook remains neutral. Meanwhile, the next crucial supply is placed around 1.12 (monthly R1; Jul high).  

The share of bulls went back from 53% to 51% yesterday, while pending orders in 100-pip range from the spot have a significant advantage among bulls (62%).