The EUR/USD pair rallied in the short term and now is back above parity. It was trading at 1.0055 at the time of writing below 1.0059 today's high. It has jumped higher as the Dollar Index traded in the red after the US economic data.
Fundamentally, the Euro-zone data came in mixed. The Euro received a helping hand from the CPI Flash Estimate which reported a 9.1% growth versus the 9.0% expected and from the Core CPI Flash Estimate, the indicator rose by 4.3% more compared to the 4.1% growth expected.
On the other hand, the USD took a hit from the ADP Non-Farm Employment Change. The indicator came in at 132K below the 300K expected. In addition, Chicago PMI came in at 52.2 points below the 52.5 expected.
EUR/USD Ranging!
As you can see on the H1 chart, the pair registered only a false breakdown below the pivot point of 0.9980, through the former low and now it has passed above the former highs.
EUR/USD challenges the weekly R1 (1.0070) and it could reach the 1.0090 key level soon. After failing to stay below parity, the price could try to extend its rebound.
EUR/USD Outlook!
A valid breakout above 1.0090 may signal further growth and could bring long opportunities.
Registering only false breakouts above the R1 and through 1.0090 may signal a new sell-off. Still, only a new lower low, dropping and closing below 0.9980 could activate more declines.
