- EUR/USD moves higher post-ADP.
- DXY breaks below the 200-day SMA.
- US ADP report came in at 67K in November.
EUR/USD has accelerated the upside in the wake of poor ADP results and is now trading in multi-week highs just beyond the 1.1100 mark.
EUR/USD now focused on ISM
The pair clinched fresh 4-week highs in levels just shy of 1.1100 the figure on Wednesday following the horrible prints from the US ADP report.
In fact, the ADP showed the US private sector added ‘just’ 67K jobs during last month, coming in well below estimates while the November’s print was also revised a tad lower to 121K (from 125K).
Moving forward, the key ISM Non-Manufacturing for the month of November is due later in the NA session.
What to look for around EUR
The pair has finally broken above the key barrier at 1.1100 the figure amidst the continuous bearish note in the greenback and the comeback of US-China trade tensions. On the more macro view, the slowdown in the region appears far from abated despite some positive results from key fundamentals in Germany and the euro bloc as of late. This does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the cautious/bearish view on the European currency in the medium term.
EUR/USD levels to watch
At the moment, the pair is gaining 0.19% at 1.1102 and faces the next hurdle at 1.1161 (200-day SMA) followed by 1.1179 (monthly high Oct.21) and finally 1.1186 (61.8% Fibo of the 2017-2018 rally). On the other hand, a breakdown of 1.1040 (55-day SMA) would target 1.0989 (monthly low Nov.14) en route to 1.0925 (low Sep.3).
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