EUR/USD rally challenges ECB stance as traders await key US jobs report

EUR/USD continues its upward trajectory, testing the European Central Bank's dovish stance as markets position ahead of crucial US employment data. The pair's strength reflects growing speculation about potential Fed policy adjustments, with traders increasingly betting on a less aggressive US monetary stance. The dollar's recent weakness across major pairs, including USD/CHF and USD/CAD, underscores shifting market dynamics. Dollar Index futures indicate broader uncertainty about the greenback's near-term direction. Technical indicators suggest EUR/USD faces immediate resistance near recent highs, while support has consolidated around key moving averages. The upcoming US jobs report remains the primary catalyst, with potential to either validate the euro's recent gains or trigger a sharp reversal. Market positioning appears stretched, suggesting heightened sensitivity to any data surprises that could influence central bank policy trajectories.