EUR/USD Eyes 1.20 as Jobs and CPI Data Loom This Week

EUR/USD is pushing toward the key 1.20 psychological level as dollar weakness and resilient eurozone fundamentals fuel the pair's upward momentum. The pair's advance faces a critical test this week with US employment and Consumer Price Index data set to be released, both of which could significantly influence Federal Reserve rate expectations. A softer-than-expected jobs report or cooling inflation print would likely accelerate the move toward 1.20 and beyond, while stronger readings could trigger a pullback as markets reprice the Fed's monetary policy path. The US Dollar Index Futures have been trending lower, reflecting broad-based dollar selling pressure that has benefited the euro alongside other major currencies. From a technical perspective, the 1.20 level represents a major resistance zone that has historically capped rallies, and a sustained break above could open the door to further upside. Traders should position carefully ahead of these high-impact releases, as volatility is expected to spike around the data prints.