### Euro Remains Resilient Amid US Dollar Weakness

The Euro continues to show strength despite the US Dollar's recent rebound attempts. The US Dollar Index (DXY) fell below the critical 100.00 mark last week and has remained under 99.00 since, contributing to the limited downside for the Euro.

Eurozone economic data released on Tuesday indicated a slight improvement in unemployment, which decreased to 6.2% in April, down from the revised 6.3% in March. Meanwhile, Monday’s US data pointed to a decline in manufacturing activity, with the ISM Manufacturing PMI dropping to a six-month low of 48.5 in May from 48.7 in April, against a forecast of 49.5. This downturn was further evidenced by rising delivery times and lower prices paid, which collectively pressured the US Dollar.

In Europe, May's Manufacturing PMI came in at 49.4, marking the fifth straight month of data improvement, albeit still indicating a mild contraction. Notably, Germany’s PMI was slightly revised down to 48.3 from the initial estimate of 48.8, reflecting ongoing challenges in Europe's largest economy. However, this adjustment had a muted effect on the Euro.

Looking ahead, investors are keeping an eye on US Factory Orders data to be reported today. Following a 3.4% increase in March, expectations are for a 3% drop in April. Additionally, the JOLTS Job Openings report will be released later, setting the stage for a series of labor market updates culminating in the crucial US Nonfarm Payrolls on Friday. Job openings are projected to have remained steady at 7.1 million in April.

On the technical front, the EUR/USD pair reached a six-week high of 1.1450 on Monday but couldn't sustain above the resistance zone between 1.1415 and 1.1435. Despite this, the pair maintains its upward trend due to broad-based US Dollar weakness. Key resistance is now identified at the 1.1450 reverse trendline, with potential for a rise towards the April 22 high at 1.1545. Failure to break through 1.1450 could see the pair retreat to the May 30 low of 1.1310 or even the 1.1220 support area.