Bad news for the EUR/USD keep dragging the pair lower, as the latest Services and Composite PMI releases showed that the rate of expansion in the EU has slowed in July, albeit they remain near its recent highs. The final EU Markit composite index posted 53.9 in July, down from 54.2 in June, but slightly above the initial estimate of 53.7. The EU Service PMI came out at 54.00 from 54.4, but above the flash initial estimate.
Most of the EUR weakness however, came by the hand of Atlanta's FED Lockhart, who pledged for a rate hike in September, unless a strong deterioration in data occur, during the previous American session. The pair broke below the 1.0900 after the comment, and is now finding selling interest around the level. Later on today, the US will release its ADP survey, which will somehow anticipate the upcoming NFP report on Friday. US employment figures are expected to be a major market mover as any reading better-than-expected should fuel the greenback's advance. The ADP is expected to come at 215K from previous 237K, and it will take a better-than-expected reading, something above 230K, to boost the pair's decline
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Technically the 4 hours chart shows that the price has extended well below a now bearish 20 SMA around 1.0940, while the technical indicators maintain their bearish inclination near oversold territory. The daily low was set at 1.0847, now the immediate support, with a break below it exposing the 1.0800 price zone. Advances towards the 1.0900 level on the other hand, will likely be seen as selling opportunities, with a break above 1.0920 required to deny the bearish bias and help the pair advancing up to the 1.0950/60 price zone.
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