The EUR/USD price resumed its swing higher as the dollar faces profit taking. The pair is trading at 1.0546 at the time of writing. 

The greenback depreciated even though the US Trade Balance and Unemployment Claims came in better than expected yesterday. 

On the other hand, the Euro received a helping hand from the German Trade Balance.

Today, the German Factory Orders reported a 3.9% growth versus 1.6% growth expected, lifting the currency pair. 

In the short term, the bias is bullish, but don’t forget that the US economic data could change the sentiment. The Non-Farm Payrolls could drop from 187K to 171K, Unemployment Rate is expected at 3.7% versus 3.8% in the previous reporting period, while Average Hourly Earnings may report a 0.3% growth compared to the 0.2% growth in August. 

Furthermore, the Canadian economic data should have an impact on the greenback as well. The Unemployment Rate is expected to jump from 5.5% to 5.6%, while Employment Change could be reported at 22.1K versus 39.9K in the previous reporting period. 

EUR/USD Price Technical Analysis: Leg Higher

(Click on image to enlarge)

EUR/USD price hourly chart

From the technical point of view, the EUR/USD pair developed a new leg higher after retesting the ascending pitchfork’s lower median line (lml). 

Now, it has jumped and stabilized above the immediate downtrend line signaling further growth. The weekly pivot point of 1.0570 is seen as the first upside obstacle. 

Also, the median line (ml)  of the ascending pitchfork acts as a magnet and attracts the price. Still, a larger upwards movement towards the major downtrend line could be activated only after taking out the median line (ml). 

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