EUR/USD faces formidable resistance under 1.10

Daily outlook for the most traded FX cross is sidelined for the moment. We see the most important resistance area between 1.0980 (100-day SMA, Dec-Jan downtrend) and 1.1050 (200-day SMA). While the pair keeps trading below this area, the mid-term forecast will tend to have an overall bearish bias. Key target for the bears is 1.08, which consists of several heavy support lines including 55-day SMA, monthly pivot point and Dec-Jan uptrend. A failure below there could trigger some purchasing activity, but inside the current triangle pattern expectations are still neutral.

SWFX bears remain in the majority of 55%, while pending orders are also bearish in both 50 and 100-pip ranges from the spot price in 56% and 54% of all cases, respectively.