The EUR/USD has recovered from it’s low and has failed to breach the mid point of 1.1250.
Looking at the EUR/USD 60 minutes chart above, we note that it is now testing the immediate support of 1.1230. As mentioned previously, the continued chipping at the significant support of 1.12 may erode it’s strength as buy positions get filled. We will need to monitor if the currency pair is headed for yet another test of the 1.12 support.
The ADP Non-Farm Employment Change came in worse than expected. 129k jobs were created instead of the expected 184k. Many analysts and investors see this data as indicative of the US Non-Farm Payroll release which is due on Friday. The US Non Farm Payroll release may increase volatility especially if the data is unexpected. It has been forecasted to report an addition of 175k jobs. Employment is an important indicator of economic health. Members can log in to their dashboards and see how the EUR/USD reacted to previous US Non Farm Payroll events for more insights. Besides the ADP Non-Farm Employment Change, both the durable goods order and services purchasing managers’ survey came in weaker than expected. These dampening releases may be affecting risk appetite,
The European Central Bank Monetary Policy Meeting Accounts will be released shortly. It is a comprehensive record of the ECB Governing Board’s most recent meeting and thus may provide deep insights into the economic conditions that form the basis of their decision on the interest rates. Investors may react to the details, resulting in price action.
The yellow lines are the possible support and resistance regions in the immediate vicinity. Do note that price action in shorter time frames are often sentimental in nature.