After falling steadily for four days, EURUSD reacted with the 1.16 support area on Friday. The small bounce is extending into the new week, though it remains modest so far.

The weekly technicals remain bearish, so this bounce should be a retracement within the trend. The bearish trend won’t be under threat until the 1.19 high is challenged. And that’s a long way from current levels.

With that said, the first resistance zones in line to the upside are located in the 1.1680 – 1.17 area (see chart), where the prior lows and the 38.2% Fibonacci retracement meet. If the price pushes through this zone, then the next resistance will come at 1.1770 – 1.18.

To the downside, 1.16 remains the key support. Below it, the focus will turn to the 1.15 area.