EUR/USD: Mildly bid above 1.20 on USD pullback ahead of US ADP, PMI

  • EUR/USD consolidates previous day’s losses amid quiet markets in Asia.
  • Fed’s Kashkari pours cold water on the face of rate hike expectations, initially teased by US Treasury Secretary Yellen.
  • Covid woes escalate in Japan, Canada but fail to overturn vaccine optimism.
  • Eurozone economic forecasts, risk catalysts also eyed ahead of Friday’s jobs report.

EUR/USD refreshes intraday high to 1.2026, up 0.10% on a day, while heading into Wednesday’s European open. In doing so, the currency major pair trims the weekly losses, piled more during the previous day, as the US dollar steps back on the market consolidation.

The US dollar index (DXY) eases 0.11% intraday while S&P 500 Futures rise the most in a week while picking up bids near 4,172, up 0.30% so far during the day.

Behind the moves could be the investor’s cautious optimism ahead of the key US data as well as mixed signals from the US Fed and Treasury officials. It should, however, be noted that the coronavirus (COVID-19) updates from Japan and Canada have been grim of late, not to forget India’s sustained run-up in infections. Alternatively, covid vaccine manufacturers have been flashing risk-positive signals and back hopes of faster economic recovery in the West.

Read: Global Covid news updates: Markets looking elsewhere for a catalyst

After Treasury Secretary Janet Yellen’s U-turn the rate hike signals, Fed Minneapolis President Neel Kashkari flaunts over the Fed’s tool to combat higher inflation, if that’s the case in the future.

On Tuesday, market sentiment worsened as downbeat US data and chatters over the global tax deal joined Yellen’s initial support to the Fed rate hike while weighing on the US Treasury yields. However, off in China and Japan, not to forget pre-NFP cautious sentiment, restricted market moves.

Moving on, Eurozone’s quarterly economic forecasts and second readings of April PMIs may offer intermediate EUR/USD moves before pushing traders to pause for the US ADP Employment Change and ISM Services PMI releases for April

Read: US ISM Services PMI April Preview: Inflation readings remain key as recovery gains strength

While upbeat figures for ADP may keep the US dollar pressured, backing EUR/USD in turn, increasing odds of a negative surprise from ISM figures can recall the greenback buyers. Though major attention will be given to Friday’s monthly jobs report from the US and hence any moves before that may be of little importance.

Technical analysis

Although EUR/USD bulls stay hopeful beyond 1.1995-90 support zone, comprising late April low and early March highs, 100-day SMA guards immediate upside around 1.2050.

Additional important levels

Today last price 1.2026
Today Daily Change 12 pips
Today Daily Change % 0.10%
Today daily open 1.2014
Daily SMA20 1.2011
Daily SMA50 1.1951
Daily SMA100 1.2053
Daily SMA200 1.1946
Previous Daily High 1.2066
Previous Daily Low 1.1999
Previous Weekly High 1.215
Previous Weekly Low 1.2017
Previous Monthly High 1.215
Previous Monthly Low 1.1713
Daily Fibonacci 38.2% 1.2025
Daily Fibonacci 61.8% 1.204
Daily Pivot Point S1 1.1987
Daily Pivot Point S2 1.1959
Daily Pivot Point S3 1.192
Daily Pivot Point R1 1.2054
Daily Pivot Point R2 1.2093
Daily Pivot Point R3 1.2121



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.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD edges higher above 1.2000 amid Yellen’s U-turn, Fed’s Kashkari

EUR/USD looks to extend corrective pullback above 1.2000. US Treasury Secretary Janet Yellen reverses initial rate hike signals, Fed’s Kashkari marks inflation as the key catalyst. Bears catch a breather amid light trading and mixed covid updates. 


GBP/USD: Teases upside break of immediate triangle around 1.3900

GBP/USD picks up bids around 1.3895, up 0.05% on a day, during Wednesday’s Asian session. The cable keeps recent recovery moves to challenge the immediate upside hurdle, namely 50-SMA and short-term triangle resistance.


Dogecoin at make-or-break point after new all-time highs

Dogecoin price remains indecisive after setting up record highs on May 4 at $0.611. The MRI has flashed a reversal signal, indicating that DOGE is might retrace. A spike in bullish momentum due to FOMO among buyers could result in a new all-time high at $0.561.

Read more

Gold: Battle lines well-defined after Yellen-led hit

Gold (XAU/USD) is on a steady recovery towards the $1800 mark, as the US dollar retreats across the board amid improving market mood. The US tech sell-off combined with Treasury Secretary Janet Yellen’s rate hike comments rattled markets and boosted the safe-haven greenback at gold’s expense.

Gold News

S&P 500 correction arriving or not?

One more day of upside rejection in S&P 500, in what is now quite a long stretch of prices going mostly sideways. As unsteady as VIX seems at the moment, it doesn‘t flash danger of spiking in this data-light week, and neither does the put/call ratio. 

Read more