EURUSD is retracing further higher this week but is hitting strong resistance at the 1.02 zone that we noted here last Monday. Today’s attempt is already rejected quite strongly, and the exchange rate is back toward the 1.01 level. 

If EURUSD moves toward 1.00 again, the resistance would be confirmed to be holding. Given how many times the trendline and 55-day moving average (blue line) were tested in this trend, 1.02 is a critical technical point on the chart. A break above it could trigger a short squeeze which could lead to a quick acceleration of the correction.

To the downside, 1.00 and then the prior lows around 0.99 remain the nearest support zones. Lower, 0.98 should also be notable support.