EURUSD continues to march higher, with the trend on the daily timeframe firmly bullish, as indicated by momentum indicators and the upward channel formation. EURUSD is now trading in the upper end of this channel while the RSI is close to overbought levels. This is often a warning sign that the bullish trend is getting tired. However, it is not a signal for a reversal by itself.

The nearest firmer resistance now stands at the 1.10 zone (see chart). There are now decent probabilities that this zone will be reached. However, some reaction seems very likely at that point, considering the overall picture and higher timeframes. Potentially attractive opportunities to go short could exist around 1.10.

To the downside, the nearest resistance is located at 1.06, ahead of the stronger one at 1.05.