The EUR/USD pair has edged higher and it seems determined to hit new highs as the Dollar Index is strongly bearish. It's trading at 1.0946 at the time of writing. Technically, the instrument received fresh impetus for the short term. Actually, you knew from my previous analysis that the currency pair should validate an upside continuation from above the 1.09 psychological level.
Fundamentally, the currency pair jumped higher as the US reported mixed data. The Unemployment Rate came in as expected, while the Average Hourly Earnings indicator reported a 0.4% growth versus 0.3% growth forecasted. Still, the USD took a serious hit from the Non-Farm Payrolls. The economic indicator was reported at 209K in June versus 224K expected.
EUR/USD Strongly Bullish!
As you can see on the H1 chart, the rate ignored the 1.0900 former high, the weekly pivot point of 1.0910, and the upper median line (uml). These represented upside obstacles. You knew from yesterday's analysis that a valid breakout through these resistance levels activates further growth.
The false breakdowns below the median line (ml) and through the 1.0844 and 1.0835 former lows announced an upside pressure.
EUR/USD Outlook!
Jumping and closing above the upper median line (uml) and above the weekly pivot point 1.0910 was seen as a buying opportunity with the first target at 1.0976 former high. Taking out this resistance could bring new longs.
