EURUSD is basically stuck in consolidation between 1.01 and 1.0250 since July 20. It is now making another test on the upside of the consolidation range at 1.0250. A breakout here could open the potential for a further 100 pips or so upside move, but EURUSD is likely to encounter strong resistance there.

Namely, the 1.0350 zone remains the first band of strong resistance. Progression through and above it won’t be easy. But even if EURUSD manages to pull off something like that, 1.05 is not far and is itself an important resistance area. All in all, the technicals suggest EURUSD will have a hard time climbing higher from here.

To the downside, the parity (1.00) zone remains in focus as key support. Below it, 0.98 and 0.95 are the next support zones lower.