EURUSD teases bears ahead of US ADP Employment data
EURUSD fades three-week-old recovery as it remains below a downward sloping trend line from early February, around 1.0745 by the press time. Also keeping sellers hopeful is the RSI retreat and a downside break of the 1.0690 support-turned-resistance confluence, comprising an ascending support line from May 13 and 10-DMA. That said, the bears seem approaching 23.6% Fibonacci retracement (Fibo.) of the February-May downturn, around 1.0620, becomes imminent. In a case where the pair remains pressured below 1.0620, monthly horizontal support close to 1.0470-60 appears the last defense of sellers.
On the contrary, a successful break of the multi-day-old resistance line, near 1.0745, becomes necessary to recall buyers. Even so, a validation from the 38.2% Fibo. level surrounding 1.0785, as well as March’s low of 1.0805, becomes necessary to convince EURUSD bulls. However, the pair’s run-up beyond 1.0805 won’t hesitate to challenge the late April swing high around 1.0935.
Overall, EURUSD bulls seem running out of steam but the bears need clear signals and are challenged by the US data’s presence as well.
