EUR/USD Current price: 1.1817
- Poor unit labor costs offset encouraging ADP headline.
- Data doing little to help the greenback break higher.
The EUR/USD trades at the lower end of its weekly range, barely above the 1.1800 level, mute after the release of the US ADP private sector survey, which showed that the country's private sector added 190K new jobs in November, barely above the 185K forecast. The greenback trades generally higher across the board, except against the JPY, undermined by softer Treasury yields. Q3 nonfarm productivity final revision came in at 3.0% matching previous estimates but below the 3.3% expected. Unit labor cost for the same period was revised to -0.2%, well below previous 0.5% or the forecasted 0.2%.Quite a disappointing reading this last that will hardly help the greenback today. There were no relevant releases coming from the EU this Wednesday. Later, the US will release its IBD/TIPP economic optimism for December, seen at 54.6 from previous 53.6, but speculative interest will likely take cues from equities and yields, which remain under pressure.
For the upcoming hours, the risk remains towards the downside according to technical readings in the 4 hours chart, as technical indicators are barely recovering within bearish territory, while the price remains below its 20 and 100 SMAs. A recovery above 1.1850 should take off some of the bearish pressure, but gains beyond 1.1890 are required to confirm a bullish extension. Below 1.1800, on the other hand, the risk turns towards the downside, with scope then to test the 1.1720 region later in the day.
Support levels: 1.1800 1.1760 1.1720
Resistance levels: 1.1850 1.1890 1.1930
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