EUR/USD remains depressed near 1.1570, FOMC looms closer

EUR/USD keeps the offered stance unchanged around 1.1570.
US ADP report surprised to the upside in October at 571K jobs.
The FOMC event is due later with QE tapering in the centre of the debate.

Pablo Piovano FXStreet

Sellers seem to remain in control of the sentiment around the European currency and force EUR/USD to drop to daily lows near 1.1560 on Wednesday.

EUR/USD weaker on US data, looks to the Fed

EUR/USD now accelerates losses and adds to Tuesday’s bearish price action against the backdrop of further recovery in the greenback as well as the prevailing cautiousness ahead of the FOMC gathering.

Indeed, the buying interest in the dollar improved further after above-estimated results from the US calendar. Actually, the US ADP report showed the US economy added 571K jobs during October, while the ISM Non-Manufacturing rose to 66.7 during last month and headline Factory Orders expanded at a monthly 0.2% in September.

Further upside in the buck also comes in response to the rebound in US yields in the front end and the belly of the curve to 0.50% and 1.57%, respectively.

EUR/USD levels to watch

So far, spot is losing 0.12% at 1.1565 and faces the next up barrier at 1.1689 (55-day SMA) followed by 1.1692 (monthly high Oct.28) and finally 1.1755 (weekly high Sep.22). On the other hand, a break below 1.1535 (weekly low Oct.29) would target 1.1524 (2021 low Oct.12) en route to 1.1495 (monthly low Mar.9 2020).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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