EUR/USD dips below 61.8% Fib support, eyes US ADP

  • EUR/USD has breached key 61.8% Fib retracement level of 1.1305. 
  • The US dollar is gaining ground likely on the back of an upbeat US ISM non-manufacturing number. 
  • The dollar bulls need a strong ADP number.

EUR/USD is currently trading well below 1.1305 (61.8% Fib R of 1.1234/1.1420) and is flashing red for the fourth consecutive day. 

The dollar found takers in the NY session yesterday after the US ISM non-manufacturing data for February came in at the highest level since November. 

The weak tone was possibly bolstered by reports stating that Brexit talks between the UK and European officials have once again reached a deadlock. 

As for today, the focus is on the US ADP employment data, which is expected to show the private sector added 189K jobs in February vs 213K additions in January. 

It is worth noting that the employment sub-index of the ISM non-manufacturing data wasn't particularly impressive. So, the dollar bulls need a strong ADP, else markets will likely start pricing in the possibility of NFP missing estimates by a big margin. The payrolls figure is due for release on Friday. 

A better-than-expected ADP could yield a deeper drop toward 1.1250, while a big miss on expectations could fuel a corrective bounce to the 5-day MA, currently at 1.1335. 

Technical speaking, the path of least resistance is to the downside. The pair has dropped below 1.13, having created a bearish lower high along 1.1407 (61.8% Fib R of 1.1514/1.1234). The 5- and 10-day MAs are trending south and the 14-day RSI has dipped below 50.00. 

Technical Levels

    1. R3 1.14
    2. R2 1.1374
    3. R1 1.1341
  1. PP 1.1315
    1. S1 1.1282
    2. S2 1.1256
    3. S3 1.1223


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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD consolidates losses as Fed moderates message

EUR/USD is trading above 1.1350, consolidating losses. The Fed's Bullard and Chair Powell have conveyed a balanced message, boosting the greenback. Treasury Secretary Mnuchin said 90% of the deal with China is done.


GBP/USD trades below 1.2700

GBP/USD is trading below 1.2700. BOE Gov. Carney said the BOE may cut rates in case of a no-deal Brexit. Boris Johnson has rattled markets by saying leaving the EU by October 31st is "do or die."


USD/JPY sticks to gains near 107.70, looks to snap 7-day losing streak

Following the sharp upsurge witnessed during the European trading hours, the USD/JPY pair has gone into a consolidation phase and is now moving in a relatively tight range in the upper half of its daily trading range.


Gold finds some support near $1400 mark, lacks follow-through

Gold held on to its weaker tone through the early North-American session, albeit pared a part of its intraday slide to the $1400 neighbourhood post-US economic data.

Gold News

EIA: Crude inventories decreased by 12.8 million barrels, WTI inches closer to $60

In its weekly petroleum report for the week ending June 21, the Energy Information Administration (EIA) announced that the commercial crude oil inventories in the United States decreased by 12.8 million barrels from the previous week. 

Read more