By CountingPips.com
The euro has continued to climb higher in forex trading against the U.S. dollar today as the EUR/USD currency pair touched its highest level since May 21st. The European common currency is increasing for a third straight day (vs. the dollar) as as it continues its rebounds off of the four-year lowpoint reached on June 7th at the 1.1876 exchange rate.
The EUR/USD opened the day near the 1.2510 mark and dipped in early trading to 1.2481 before being supported 
around 1.2500. The EUR/USD advanced to the 1.2600 threshold for the first time in over five weeks following today’s US jobs report that showed the US economy shed 125,000 jobs in June. This was the first decline in US payrolls in six months and gives concern that the US economic recovery could be faltering.
Overall, the euro/dollar pair has had a roller coaster week with rather sharp declines on Monday and Tuesday before finding its footing on Wednesday. Thursday saw the euro/dollar surge higher on the better than expected European Central Bank lending program to commercial banks bringing the pair to over 1.2500 for the first time since May while today the pair has reached even higher. Next week should be interesting to see whether this euro rally will continue and if the EUR/USD could be on its way to 1.3000.
EUR/USD Hourly Chart – The EUR/USD shooting higher over the past couple of days to the 1.2600 exchange rate for the first time since mid-May. The pair today overcame the Fibonacci 38.2 percent retracement level (near 1.2600) on the decline from 1.3691 on April 12th to 1.1876 on June 7th.
