EUR/USD: Bulls fight back control, re-takes 1.1780 ahead of ADP

Fresh bids emerged just below the midpoint of 1.17 handle at European open, allowing a minor pullback in EUR/USD pair back towards the daily tops of 1.1780 levels.

EUR/USD: 1.1780 – a tough nut to crack?

The spot stalled its corrective slide and regained poise in the European session, as the US dollar resumed its bearish momentum against its major peers amid renewed weakness seen around Treasury yields. The USD index drops -0.26% to test 2-day lows of 93.16 levels, as the US rates decline -0.40% to -1%.

Moreover, the EUR remains buoyed amid expectations of some positive news from the news conference likely to be held by the Catalan leader Carles Puigdemont later this session. Meanwhile, a bout of profit-taking in EUR/USD cannot be ignored, as markets head towards the speeches due to be delivered by the ECB President Draghi and Fed Chair Yellen.

However, markets believe the recovery gains in the spot could be short-lived as unimpressive Eurozone PMIs and retail sales data combined with concerns over the Catalan crises will continue to undermine the sentiment around the Euro.

Attention now turns towards the US ADP jobs and US ISM non-manufacturing PMI releases for fresh trading impetus.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet noted: “Below 1.1720, the mentioned low at 1.1695 is the immediate support, en route to 1.1660, August low. To the upside, the pair can extend up to the 1.1820/30 region on a break above the daily high, although further gains are quite unlikely for today.”