Technical Analysis:
EUR/USD finished sharply higher on Thursday, gaining approximately +1.62% despite pulling back slightly from intraday highs as the U.S. dollar and Treasury yields rebounded in the New York session. After opening near 1.1050, EUR/USD initially surged to an overnight peak at 1.1147—its highest since recent bullish momentum intensified. The move higher was initially underpinned by tightening German-U.S. yield differentials and broader weakness in the dollar, though a partial retracement occurred late as EUR/JPY weakened, equities softened, and gold continued its retreat.

Technical signals remain distinctly bullish following EUR/USD’s decisive break of the crucial 76.4% Fibonacci retracement of the significant drop from 1.1214 to 1.0125. The ability of the pair to hold comfortably above significant moving averages—including the 200-day (around 1.0730), 21-day (near 1.0850), and 5-day (approximately 1.0950)—significantly bolsters the bullish bias. Both daily and monthly RSI indicators are ascending, suggesting strong upward momentum and potential for continuation toward higher technical targets.

Immediate upside resistance resides at Thursday’s intraday high of 1.1147. A convincing break of this level could rapidly propel EUR/USD toward a retest of the pivotal 2024 high at 1.1214. Initial downside support is positioned near 1.1000, with further support around 1.0950-60. However, traders should remain vigilant ahead of Friday's critical U.S. March payroll data and comments from Federal Reserve Chair Jerome Powell, as unexpectedly hawkish signals or strong labor-market data could introduce volatility, challenging the otherwise robust technical bullish outlook.