EUR/USD comes back above monthly S1

A bounce back took place in the one-day chart for EUR/USD. The pair climbed above 1.1050 on Monday, pricing in worse than expected US housing statistics. Still, the probability of further gains remains tepid and rallies are expected to be contained by key resistance, namely 200-day SMA/weekly PP at 1.1117/33. Additional leg lower is likely to arrive in the nearest future. Short term losses should test the 1.10 psychological level, while a medium term decline will focus on May/July lows at 1.0819/08.

Distribution between bulls and bears in the SWFX market in neutral again on Tuesday. Meanwhile, the portion of bullish pending orders in 100-pip range from the spot declined from 50% to 45% in the past 24 hours of trading.