The euro is struggling to keep its balance between upbeat PMI and new lockdowns.
The pair has been trying to rebound from last March’s bottom near 1.6330. After establishing a base around 1.65 the price action has surged with solid momentum.
The current retracement is testing the 50% Fibonacci level (1.6730). A deeper correction would test the 61.8% level.
1.6890 is a critical resistance on the upside, and if buyers succeed in clearing the way the euro could extend the rally above the psychological level of 1.7.