EUR/USD returns to 1.10 ahead of ECB week

EUR/USD booked another bullish trading session last Friday, with gains extending beyond the 55-day SMA at 1.0972. After touching the 200-day SMA at 1.1045, the pair was forced to come back and finished the week at 1.10. The exchange rate will be turbulent this week, as the ECB decision approaches on March 10. Growth above the 200-day SMA will expose the first monthly resistance line at 1.1272, followed by the February peak at 1.1377. The bears, however, will be hoping for a reverse of the current tendency, as they are aiming at the February low of 1.0809.

Over the weekend the SWFX market sentiment worsened quite significantly, as the total percentage of bullish market participants slid from 53% to 48%. Pending orders also remain 51-53% Euro-short.