EURUSD has retraced 0.382 of the last leg down since early September and is testing upper falling trendline in the falling channel and strong resistance at around 1.0635. That level was also the strong support back in September and is now a very strong resistance level
EURUSD needs to close above for further upside potential to the 0.618 of the last leg down since September and the 0.328 retracement of the entire downtrend since July around 1.0762.
That level was also the strong support back in August and is now a very strong resistance level
If EURUSD is failing to closed above 1.0635 it could slide back lower towards this month's lows below 1.05
RSI is could be key here, divergence end-September strongly indicated a correction. That correction is now ongoing question is how high can it go.
RSI is still showing negative sentiment – needs to close above 60 threshold to reverse to positive - but an EURUSD close above 1.0635 could be good indication RSI will break back above 60