• EUR/USD extends the optimism to the 1.0270 region on Monday.
• Extra gains look likely on a breakout of the 1.0280 zone.

EUR/USD’s upside momentum has faltered once again around the 1.0270 region at the beginning of the week.

Ideally, the pair should clear the area of recent peaks around 1.0280 to allow for the continuation of the rebound in the near term. Against that, the next hurdle now appears at the temporary 55-day SMA, today at 1.0428.

In the meantime, the pair is expected to remain under downside pressure while below the 6-month support line around 1.0450.

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.0955.

EUR/USD daily chart