The EUR/USD pair rallied in the last hour but the downside pressure remains high. It was trading at 1.0017 at the time of writing. It remains to see how it will react around the parity. As you already know, the Dollar Index dropped a little but it maintains a bullish bias.
The currency pair continues to stay higher even if the US CB Consumer Confidence and the JOLTS Job Openings came in better than expected. On the other hand, the German Prelim CPI rose by 0.3% matching expectations.
The fundamentals could drive the price during the week. The US is to release the ADP Non-farm Employment Change, ISM Manufacturing PMI, Average Hourly Earnings, Unemployment Rate, and the Non-Farm Employment Change.
0.9980 acts as critical support
The EUR/USD pair is trapped between the 1.0033 and 0.9980 levels. As you can see on the H1 chart, the price tested and retested the uptrend line and now it tries to resume its growth. As long as it stays above the uptrend line, it could approach and reach at least the immediate highs.
Still, technically, the current up-channel represents a potential bearish formation. Staying below 1.0033 and making a valid breakdown below the uptrend line could announce a deeper drop.
EUR/USD Forecast!
A new lower low, a valid breakdown below 0.9980 could activate more declines and could bring new short opportunities. 0.9899 stands as a potential downside target.
