EUR/USD prolongs a decline below 1.12

EUR/USD was rejected by the weekly pivot point on Monday and was forced to capitulate below the 1.12 mark. After piercing through the 50% Fibonacci retracement of Jul-Aug uptrend and 20-day SMA, the only support was offered by the weekly S1 at 1.1183. Despite that, we are looking at the next demand zone around 30 pips below the spot price. A slide below the 61.8% retracement and 55/100-day SMAs should allow a further downward move to the 200-day SMA at 1.1083.

Distribution between bulls and bears in the SWFX market is completely equal at the moment. In the meantime, the share of long pending orders in 100-pip range from the spot grew from 47% to 48%.