With the latest leg up, EURUSD is now making a serious test into the 0620 - 1.0750 resistance area, which is primarily formed by Fibonacci levels. As we discussed in previous weekly Fx posts, it is a crucial Fib zone where the key 38.2% and 61.8% levels are converging (as measured from the two distinct highs within the 2022 downtrend).

Despite the recent bullish moves, a bigger reaction here in the 0620 - 1.0750 Fib resistance still can’t be excluded. A renewed bearish attempt toward 1.05 (last week’s low) and a close under it would signal that the resistance here is holding. On the other hand, if EURUSD breaks higher, then the next resistance up would be 1.10.

To the downside, below 1.05, the next resistance is at the 1.0350 – 1.0300 area.