The EUR/USD closed higher on Thursday as it neared a 3-year high. It was under pressure early in the session due to the release of upbeat U.S. jobs data. However, the Euro was able to recover from the move to trend higher the rest of the session.
According to a report from ADP Research Institute, U.S. private employers added 250,000 jobs in December, the biggest monthly increase since March. Traders were looking for a gain of 190,000 jobs.
The main trend is up according to the daily swing chart. The EUR/USD hit a high of 1.2088, slightly below the September 8, 2017 top at 1.2092. The last time the Forex pair was trading in this area was on December 31, 2014.
Overcoming and sustaining a rally over 1.2092 will indicate the buying is getting stronger. This could trigger a surge into a long-term 50% level at 1.2166. This price is the mid-point of the 1.3993 to 1.0339 long-term range.
The daily chart indicates there is plenty of room to the upside over 1.2166. This price is a potential trigger point for an acceleration to the upside with the next major target the December 16, 2014 main top at 1.2569.
If the EUR/USD is rejected at 1.2092 then look for a possible pullback into 1.1886 to 1.1823 over the near-term.
This article was originally posted on FX Empire