EURUSD pair was unable to reclaim the 1.1000 level due to heavy selling.
The EURUSD pair was unable to reclaim the 1.1000 level due to heavy selling interest on a peak above the mark. The pair is currently trading in the 1.0960 price range, under pressure for the third day in a row but still trading above last week’s low of 1.0943. Financial markets became risk-averse ahead of key US data, with global indexes trading in the red and the US Dollar outperforming its major rivals.
ADP Employment Change survey in the United States, 324K new job positions were added in July.
The opening half of the day was rather calm in terms of macroeconomic data, albeit the fact that Fitch Ratings reduced the US debt rating from AAA to AA+ on Tuesday in the midst of the debt ceiling battle dampened the atmosphere. However, prior to the opening of Wall Street, the US issued the ADP Employment Change survey, which revealed that the private sector added 324K new job posts in July, exceeding the 189K projected. The announcement boosted the US dollar ahead of the Nonfarm Payrolls report (NFP) due out next Friday.
EURUSD Technical Outlook
At about 1.1000, the EURUSD pair is trading below the 61.8% Fibonacci retracement of the recent bullish run between 1.0833 and 1.0975, indicating a full regression to the range bottom in the next sessions.
The daily chart’s technical indicators show substantial bearish slopes well below. Their midlines support a downward extension as well. Finally, the pair is dropping farther below its 20 Simple Moving Average (SMA), indicating the intensity of the bears.
The 4-hour chart reveals that the pair is still trading below all of its moving averages, with the 20 SMA now trading below the 100 and 200 SMAs, albeit with little directional strength.
At the same time, the Momentum indicator is falling below its 100 line, while the Relative Strength Index (RSI) is falling dramatically below 38, skewing the risk to the downside.
