EUR/USD faces pressure at 1.0280 as FTSE 100 rallies on risk-on mood

EUR/USD is trading near 1.0280, showing signs of weakness as European equities, particularly the FTSE 100, attract capital flows amid improved risk sentiment. The pair has declined 0.4% from Friday's close, with technical analysis suggesting immediate support at 1.0250 and resistance at 1.0320. The FTSE 100's outperformance reflects growing optimism about UK economic resilience, drawing funds away from the euro. Market positioning data indicates traders are increasingly bearish on EUR/USD, with speculative short positions rising to three-week highs. The divergence between European Central Bank and Federal Reserve policy expectations continues to weigh on the pair, with the ECB's more dovish stance undermining euro strength. Key technical indicators, including the RSI at 42, suggest oversold conditions may provide temporary support. Traders should watch for a potential bounce from 1.0250, though the broader trend remains bearish heading into this week's economic data releases.