EURUSD reached a low of 0.9535 last Wednesday, after which it rebounded strongly to now trade above 0.98 already. The psychologically important 0.9500 was not traded last week as the market decided to retrace higher instead.

Still, the EURUSD bear trend remains in place and won’t be challenged until the parity (1.00) zone comes under attack. So, far that is still some 200 pips away, and it doesn’t look like EURUSD can keep going up in a straight line. Some topping out and a subsequent fresh move down looks like the more probable scenario. 

In addition to 0.98, the 0.99 zone should also be resistance ahead of 1.00. To the downside, EURUSD can still trade to or below 0.95. That would not be a surprise if or once a new bearish leg starts. For now, EURUSD seems to be in “corrective” or consolidative mode.