EUR/USD Traders Eye 1.1580 Resistance Amid Eurozone Growth and Dollar Uncertainty

The EUR/USD currency pair has been trading below its recent high of 1.1580, which was reached after a disappointing U.S. labor market report showed nonfarm payrolls falling by 23,000.

This weak result triggered broad-based selling in the dollar, but the euro remains above support in the 1.1520-1.1500 area, suggesting that bullish sentiment remains intact and another test of the 1.1580 resistance zone is possible.

The broader economic backdrop in the eurozone has improved compared to the start of the year, while rising inflation risks are increasing speculation about tighter monetary policy from the European Central Bank, which could support the euro.