- EUR/USD attracted some dip-buying on Wednesday amid a subdued USD price action.
- The USD remained on the defensive following the disappointing release of the US ADP report.
- Private-sector employment rose by 330K July as against 695K expected and 680K previous.
The EUR/USD pair reversed an early dip to levels below mid-1.1800s, or multi-day lows and moved to the top end of its intraday trading range post-US ADP report, though lacked any follow-through.
The pair witnessed some selling in reaction to the downward revision of the Eurozone services PMIs for July but managed to attract some dip-buying amid a subdued US dollar price action. Firming market expectations that the Fed will stick to its ultra-lose monetary policy stance for a longer period continued acting as a headwind for the greenback. This, in turn, was seen as a key factor that extended some support to the EUR/USD pair.
The USD bulls remained on the defensive following the disappointing release of the US ADP report, which showed that private-sector employers added 330K new jobs in July. This was well below consensus estimates of 695K and June's downwardly revised reading of 680K (692K reported previously). The data added to worries about the potential economic fallout from the fast-spreading Delta variant of the coronavirus and weighed on the greenback.
That said, the prevalent cautious mood around the equity markets might extend some support to the greenback's relative safe-haven status and cap gains for the EUR/USD pair. Investors might also be reluctant to place any aggressive bullish bets ahead of Friday's release of the closely-watched US monthly jobs report. Hence, it will be prudent to wait for some strong follow-through buying before positioning for any further appreciating move.
Technical levels to watch
|Today last price||1.186|
|Today Daily Change||-0.0004|
|Today Daily Change %||-0.03|
|Today daily open||1.1864|
|Previous Daily High||1.1893|
|Previous Daily Low||1.1854|
|Previous Weekly High||1.1909|
|Previous Weekly Low||1.1764|
|Previous Monthly High||1.1909|
|Previous Monthly Low||1.1752|
|Daily Fibonacci 38.2%||1.1869|
|Daily Fibonacci 61.8%||1.1878|
|Daily Pivot Point S1||1.1847|
|Daily Pivot Point S2||1.1831|
|Daily Pivot Point S3||1.1808|
|Daily Pivot Point R1||1.1887|
|Daily Pivot Point R2||1.191|
|Daily Pivot Point R3||1.1927|
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.