- The bias is bullish as the Dollar Index is bearish.
- Taking out the resistance levels confirms more gains.
- The 1.0800 psychological level is seen as a potential target.
The EUR/USD price resumed its swing higher. The pair is trading at 1.0749, below today’s high of 1.0756, at press time. Fundamentally, the greenback took a hit from the US economic data on Friday.
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The NFP came in at 150K in October versus 178K and compared to 297K in September, Average Hourly Earnings rose by 0.2% less compared to the 0.3% growth estimated, Unemployment Rate jumped unexpectedly from 3.8% to 3.9%, while ISM Services PMI dropped to 51.8 points below 53.0 points forecasts.
In addition, the Canadian Unemployment Rate and Employment Change also came in worse than expected. DXY’s massive drop weakened the USD.
Today, the German Factory Orders increased by 0.2%, even if the traders expected a 1.3% drop, while the German Final Services PMI jumped from 48.0 to 48.2 points.
Furthermore, the Eurozone Final Services PMI remained at 47.8 points, while Sentix Investor Confidence printed at -18.6 points compared to -22.2 points estimates.
Tomorrow, the German Industrial Production and the Eurozone PPI could have an impact.
EUR/USD Price Technical Analysis: Leg Higher
Technically, the EUR/USD price extended its rally after jumping above the ascending pitchfork’s median line (ml). It is near the upper median line (uml), representing an upside target and obstacle.
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The 38.2% retracement level represents a resistance level as well. It remains to see how it reacts around these levels. False breakouts may announce a new sell-off, while a valid breakout activates further growth towards the 1.0800 psychological level and up to the R1 (1.0810).
Still, after such an impressive growth, we cannot exclude a temporary retreat. The price could come back to retest the support levels before jumping higher.
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