While EURUSD pushed as high as 1.0480 last week, it did not manage to break through the wider 1.0350 resistance zone in a meaningful way. The pair is now backing off further from the resistance and is already trading below 1.03 as of today’s (Monday) session. It also wasn’t able to close above the 200-day moving average (red).

Still, a complete rejection of the powerful rally above parity is still some way off. In fact, EURUSD will need to return back toward 1.00 before the whole corrective rally can be declared as rejected. In that case, the sentiment will switch back to bearish, and we’ll watch the 0.9750 and 0.95 zones as support.

For now, however, the focus will remain to the upside. A break above the 200 DMA can still open further upward potential, with the 1.05 area the next resistance zone higher. Above there, 1.0750 is the resistance zone traders will watch.