EUR/USD refreshes session low after ADP report, ISM PMI and Fed minutes next
Having failed just ahead of the 1.0700 handle, the EUR/USD pair extended the rejection move and refreshed session low following the release of US ADP report.
Currently trading around 1.0665-60 region, the pair met with some fresh supply after ADP reported yet another stellar month of jobs addition by the US private sector employers. According to the report, private sector jobs grew by 263K during the month of March.
The growth surpassed even the most optimistic estimates and was also better-than February’s 245K (revised lower from 298K) new jobs and was good enough to help the US Dollar to gain some traction.
With ADP report seen as a precursor to Friday's keenly watched official data, today’s upbeat data would certainly raise bars for the headline NFP print and hence, attracted some fresh selling pressure around the major.
Focus now shifts to the release of US ISM non-manufacturing PMI, due in a short while from now. However, Wednesday’s key highlight would the Fed minutes, due for release during NY trading session and would be looked upon for fresh insights over the central bank’s near-term monetary policy outlook, which should provide fresh impetus over the pair’s next leg of directional move.
Technical outlook
"The technical picture for the pair is neutral, considering the limited range seen these last few days, although the risk remains towards the downside, as its holding near the lower end of its past three-week range. In the 4 hours chart, the price is developing a few pips above horizontals 20 and 200 SMAs, whilst technical indicators turned lower within neutral territory, lacking clear directional strength." writes Valeria Bednarik, Chief Analyst at FXStreet.
She furtehr added, "Some follow-through can be expected, only on an upward acceleration through 1.0710, or a bearish breakout of the 1.0620 support. Above the first, the next intraday bullish target is 1.0750, while below 1.0620, the levels to watch are 1.0590 and 1.0565."