EURUSD has reached the highest levels since April last year as it briefly traded above 1.09 last week. It is now entering the most critical technical resistance area during this move to the upside.

Following the break above the 1.0620 - 1.0750 resistance, it was clear that EURUSD could realistically reach 1.10. That may still come, though even if it doesn’t reach the 1.10 level itself, the current levels close to 1.09 are part of a wider resistance area of 1.10. 

Thus, we can say EURUSD is already testing this critical 1.10 resistance. It is indeed critical due to several factors. Most significantly, it represents the major breakout point that occurred last year after Russia started the war in Ukraine. EURUSD is now testing the entire bear trend of recent years. A break higher above the 1.10 area will be a significant sea change in the EURUSD technical situation.

On the other hand, if 1.10 holds as a resistance area, then the major bear trend will remain intact. In this case, EURUSD can move down toward 1.05 again (1st support zone) and potentially test parity again (1.00).