In the world of forex trading, every small fluctuation matters and understanding the trends is key to making informed decisions. As we closed last week, the EUR/USD pair was trading at 1.0935/40, slightly down by 0.08% from its Friday close at 1.0940. The currency pair experienced a noticeable spike to 1.0980 in the immediate aftermath of the US jobs report, largely attributed to a fall in US yields. However, as US yields rebounded throughout the session, the US dollar recovered from its lows, reflecting the intricate dance between yield movements and currency values.

Looking ahead, the market’s focus shifts towards the upcoming US CPI data set for release on Tuesday. This data is crucial as it could significantly influence the Federal Reserve’s monetary policy decisions, thereby impacting the EUR/USD pair’s direction.

From a technical perspective, the EUR/USD is showing signs of an uptrend, with the 5, 10, and 21-day moving averages (MAs) aligned in a bullish configuration. This alignment suggests a positive outlook, at least in the short term. Support for the currency pair is firmly established at the 10-day MA, which stands at 1.0876. Should the pair break below this level, it might indicate that the upward momentum is waning, and traders could adjust their strategies accordingly.

On the resistance side, the 1.0980 mark—Friday’s high—is where selling pressure is anticipated. A push above this resistance level could open the path to 1.1034, which represents the 61.8% Fibonacci retracement of the December-February decline. Such a break would not only signify a continuation of the bullish trend but also set the stage for further gains.

As we navigate through these market dynamics, the interplay between upcoming economic data releases and technical indicators will be crucial. Traders and investors alike should stay tuned to these developments, as they could offer valuable signals for future movements in the EUR/USD pair. Whether you’re bullish or bearish on the pair, the coming week promises to provide significant insights that could shape trading strategies for the near term.