EUR/USD: Well bid above 1.1800, eyes on US ADP, stimulus talks

EUR/USD extends the previous day’s run-up to a three-day top.
American Congress still lingers over aid package, US-China trade talks can resume mid-August.
US ISM Non-Manufacturing PMI, second-tier data from the Eurozone will also decorate the calendar.

Anil Panchal FXStreet

EUR/USD rises to 1.1816 during the pre-European session on Wednesday. The quote extends the previous day’s gains to attack a three-day top as US dollar drops across the board. Though, the bulls remain cautious ahead of the key US data and the on-going talks concerning coronavirus (COVID-19) relief package.

The US dollar index (DXY) drops 0.14% to 93.11 by the press time. The greenback gauge seems to bear the burden of the deadlock over phase 4 of the COVID-19 package. Although policymakers keep suggesting that a decision will arrive before they go on a vacation during this weekend, market players stay unconvinced considering the larger difference between the Republicans and the Democrats.

While taking the bids, the EUR/USD pair ignores increasing odds of the Sino-American trade discussion. The policymakers are up for a meeting on August 15 despite on-going tussle over TikTok. Elsewhere, pandemic woes in the US and the bloc seem to have been probed by steady numbers and a persistent search for the vaccine.

Amid all these catalysts, the market’s risk-tone remains sluggish with the US equity futures reversing the early-Asian losses to track Wall Street’s gains. Though, stocks in Asia-Pacific remain in the red.

Looking forward, Eurozone Retail Sales and Services PMIs could entertain the pair traders ahead of highlighting the importance of the US ADP Employment Change for July. The early signal for Friday’s key Nonfarm Payrolls (NFP) is expected to recede from 2,369K to 1,500K, which in-turn can extern additional downside pressure on the greenback. Also likely to please the EUR/USD bulls could be the ISM Non-Manufacturing PMI that is expected to soften from 57.1 to 55.

Read: US ADP Employment Change July Preview: Following the high frequency data

Technical analysis

While the 1.1700-1695 area restricts the pair’s near-term downside, bulls may pause for a check around 1.1910 before attacking the 1.2000 threshold.

Additional important levels

Overview
Today last price	1.1817
Today Daily Change	14 pips
Today Daily Change %	0.12%
Today daily open	1.1803

Trends
Daily SMA20	1.1556
Daily SMA50	1.1366
Daily SMA100	1.1123
Daily SMA200	1.1096

Levels
Previous Daily High	1.1806
Previous Daily Low	1.1722
Previous Weekly High	1.1909
Previous Weekly Low	1.1642
Previous Monthly High	1.1909
Previous Monthly Low	1.1185
Daily Fibonacci 38.2%	1.1774
Daily Fibonacci 61.8%	1.1754
Daily Pivot Point S1	1.1747
Daily Pivot Point S2	1.1692
Daily Pivot Point S3	1.1663
Daily Pivot Point R1	1.1832
Daily Pivot Point R2	1.1861
Daily Pivot Point R3	1.1917

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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