EURUSD continues to trade well within the bearish channel, although mainly retracing in consolidation since the start of the month. Nonetheless, no key resistance levels have been broken, and the trend remains down here.

Since mid-October, the pair has been trading in a very tight range of 150-200 pips, roughly between 0.97 and 0.9850. It has been retracing higher last week again but has hit the strong resistance from the multi-month, long-term falling trendline that currently sits at the 0.99 zone (see chart). The resistance is holding so far and looks like another attractive opportunity for establishing fresh short positions.

Above 0.99, parity (1.00) should also be a key technical zone that will provide strong resistance. To the downside, 0.97 is the first support in line ahead of the more important one at 0.95. A break of 0.95 should clear the way for downside continuation, potentially toward 0.92.