The EUR/USD pair retreated a little in the short term, but it has found strong demand. At the time of writing, it rallied. It was located at 1.0659 at the time of writing, and it seemed determined to approach and reach new highs, as the Dollar Index is still bearish.
Fundamentally, the greenback took a hit from the US Unemployment Claims earlier today, that's why the EUR/USD edged higher. The economic indicator came in at 225K matching expectations and above the 216K in the previous reporting period. This was bad for the USD in the short term.
Tomorrow, the US Chicago PMI could bring more volatility and could be decisive in the short term.
EUR/USD challenges the resistance
Technically, the EUR/USD pair found support on the weekly pivot point of 1.0620, and now it challenges the 1.0662 key resistance. The level of 1.0669 represents an upside obstacle as well, so it remains to see how it will react in this resistance zone.
Being in a supply zone, false breakouts or strong rejections may announce a new sell-off. You knew that only escaping from this extended range could bring us new opportunities.
EUR/USD forecast
Jumping and closing above the 1.0669 and above the 1.0676 spike high could validate the breakout from the range between the 1.0662 and 1.0581 levels. This is seen as a buying opportunity. The weekly R2 (1.0700) stands as a potential upside target.
