EUR/USD Current Price: 1.1204

  • The US ADP report showed that the private sector lost 2.76 million jobs in May.
  • Services output improved in the Union remains near record contraction lows.
  • EUR/USD consolidating gains, corrective declines could find support around 1.1160.

The EUR/USD pair reclaimed the 1.1200 level this Wednesday, extending its rally to 1.1227, its highest in almost three months, as the market mood remains upbeat. Investors welcome news showing that the worst of the pandemic seems to be over in Europe, with most countries reigniting their economies. Meanwhile, protests in the US continue, although the violence somehow receded. The market remains in risk-on mood with high-yielding assets strengthening and those considered a refugee giving up ground.

In the data front, Markit released the final versions of May European PMIs. For the Union, the services index resulted at 30.5, while the Composite index improved to 31.9. German figures were also upwardly revised from preliminary estimates, although contraction remains at record levels in all of the EU. The Producer Price Index in the region contracted by 2.0% monthly basis in April, while it slid by 4.5% when compared to a year earlier.

Ahead of Wall Street’s opening, the US has released the ADP survey on private jobs’ creation. According to it, the US lost 2.76  million positions in May, much better than the 9 million expected. Later today, the country will release the official ISM Non-Manufacturing PMI, foreseen at 44 in May from 41.8 IN April, while Markit will publish the final version of the Services PMI for the same month. The US will also unveil April Factory Orders, seen down by 14% in the month.

EUR/USD short-term technical outlook

The EUR/USD pair has retreated from the mentioned high ahead of the ADP release but the dollar continues to lack self-strength. US indexes accelerated their advances with the news, leaving little room for a significant dollar’s run.

The pair is trading at around 1.1200, retaining its bullish stance. In the 4-hour chart, it continues to develop above a bullish 20 SMA which stands over 200 pips above the larger ones. The Momentum indicator eases within positive levels, while the RSI remains in overbought territory.  A downward corrective movement seems unlikely, with buying interest set to defend the 1.1160 static support area.

Support levels: 1.1160 1.1120 1.1070  

Resistance levels: 1.1225 1.1260 1.1300

View Live Chart for the EUR/USD

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Majors

Cryptocurrencies

Signatures