EURUSD extended higher after the rebound at the 1.1550 support zone in the first half of October. But the rally still lacks serious momentum, and in fact, the price is already falling this Monday after failing to move above the 1.1665 resistance. So, the overall technical situation suggests that this EURUSD rally is only part of a correction within the larger bear trend (see chart).

The 1.17 and 1.1750 are the key resistance zones to the upside and should hold any further bullish attempts. The 1.1750 resistance zone remains like the key threshold that, if broken, can seriously challenge the current downtrend and would at least mean that a move to 1.19 or 1.20 is becoming more probable.

To the downside, the first support remains at the lows at the 1.1550 zone (1.1520 actual low). Below it, if the downtrend resumes, EURUSD could extend toward 1.14 and lower as part of the gradual bearish trend here. Also worth noting is the head and shoulders pattern that was triggered by the break and confirmation of the neckline this summer remains alive and has its target projection in the 1.12 area.