After briefly trading below the 1.00 level for a few hours, EURUSD is recovering this week and almost rose some 200 pips above parity. Still, within the context of the predominant bearish trend, this is still only a minor retracement.

The first resistance higher is at the now “distant” 1.0350 zone, with the next one at 1.05. EURUSD reaching either of these zones would still be well within the borders of the current downtrend. Only a break above the 1.05 zone would pose a more serious threat for the bears.

To the downside, all focus remains on the parity (1.0000) level and the zone around it. A renewed break below it is certainly possible, if not probable. The 0.99 and 0.98 round number levels would be support zones in such a scenario.