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 Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD retreats towards 0.6900 amid cautious markets

AUD/USD retreats towards 0.6900 amid cautious markets

AUD/USD is easing towards 0.6900, fading a renewed uptick amid a cautious market mood. The US dollar is attempting a bounce, as investors rethink the impact of aggressive Fed rate hikes on growth. A dip in the Australian business confidence survey also weighs on the AUD. 

AUD/USD News

USD/JPY drops towards 135.00 amid risk-aversion

USD/JPY drops towards 135.00 amid risk-aversion

USD/JPY is heading south to test 135.00, having failed to sustain above 135.50. The pair is falling in tandem with the US Treasury yields while the return of risk-off flows underpins the USD bounce. Focus shifts to US data. 

USD/JPY News

Gold bounces off $1,820 support zone, focus on US data, Fed’s Powell

Gold bounces off $1,820 support zone, focus on US data, Fed’s Powell

Gold Price consolidates recent losses at around $1,825.00 during Tuesday’s Asian session. In doing so, the yellow metal takes clues from the market’s cautious optimism ahead of the key US consumer sentiment numbers and the much-awaited central bankers’ debate at the ECB forum.

Gold News

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price shows compression of two Simple Moving Averages as price consolidates. APE price shows bullish re-entrance on the Volume Profile pattern, but traders should steer away from being early buyers. Invalidation of the bear trend remains at $6.15.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures