EUR/USD to be anchored by 20-day SMA

As expected, the EUR/USD cross managed to successfully test 20-day SMA and weekly S1 at 1.0850/45 yesterday. After touching the July low at 1.0808 the pair decided to bounce back and close the session at 1.0824. As daily technical indicators are giving stronger bullish signals, it is possible that some kind of a revival will take place on Friday. A climb back above the 20-day SMA will support the bulls to push EUR/USD up to 55-day SMA (1.0944) in the mid-term, while the bears are still hoping to see a sell-off continuing in the direction of the monthly pivot at 1.0724.

The bulls are still holding slightly more than 46% of all trades, which puts the bears at 54% in the morning on Friday. Meantime, pending orders to buy the Euro vs Dollar slid from 29% to 27%.