EURUSD managed to break above 1.05 in Monday trading today but hit the resistance area that stands above 1.06. Essentially, this is the 0620 - 1.0750 area, which represents big resistance due to multiple factors like Fib levels and important previous lows (from Covid March 2020 crash).

Some reaction here at the 0620 - 1.0750 area is very likely, as we are already seeing today. A further test higher is certainly possible as the resistance stretches all the way to 1.0750. However, it also could be that EURUSD only touches this area and reverses. It could be the perfect setup to re-enter short, and the market action will remain the best guide for that. A bearish signal or pattern on lower timeframes could give an early hint whether EURUSD will test further higher to 1.0750 or reverse sooner.

To the downside, the 1.03 – 1.0350 zone is the first support ahead of parity (1.00).