EUR/USD rebounded thanks to the weakness of the US dollar

EUR/USD rose sharply to the upper border of the rising price channel over the weekend as the NFP report showed a deterioration in the labor market.

EUR/USD closed above 1.0700 over the weekend and is now heading towards 1.0830, approaching the 200-day SMA. However, this upward momentum mainly comes from the weakness of the US dollar. Therefore, if tensions in the Middle East continue to escalate and help the US dollar rise again, the upward momentum may weaken. However, the greenback does not react as strongly to military tensions as gold.