EUR/USD strengthens a drop below 1.0750

EUR/USD was down for a third session in a row on Tuesday. The currency pair was hammered by depressing European fundamentals, which led to a dip below the second daily support of 1.0750 (weekly S2. Alongside, the first demand was easily eroded near 1.08. Now the mid-term focus shifts to the area just above 1.05, where both December and April lows lie. Intermediate support for the bulls should be offered by weekly S3 and monthly S1 and 1.0669 and 1.0565, respectively. Meantime, any revival will be complicated by the downward-sloping 55-day SMA, currently at 1.0841.  

Open positions on the EUR/USD currency pair are broadly flat for a seventh consecutive working day, meaning the overall bearish advantage holds at 14% (43% bullish share vs 57% bearish share).