Eurusd Moves Down Before Adp

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Eurusd Moves Down Before Adp

Eur/Usd Moves Down To 1.0700 As Usd Gains Before Adp

EUR/USD moved down towards the 1.0700 handle on Wednesday amid a rising US dollar. The EUR/USD is struggling after the dovish comments from the Fed Powell. At the same time, the EU inflation is going down, which is also keeping the Euro under check.

Now, the EUR/USD investors are eyeing the results of the ADP to get an idea about the upcoming NFP report. Historically speaking, the ADP and the NFP report are usually separate from each other & often tell contradictory views.

Eur/Usd To Retest 1.0666

If the EUR/USD comes under the grasp of the bears, a retest to 1.0666 will be on the cards, followed by the next support at 1.0649. After that, the 16th April low is located at 1.0601, which will also be very important for the Euro bulls.

However, if we see a bullish resurgence in the EUR/USD, it will mean a revisit to the 200 SMA located at 1.0791, followed by the next resistance at 1.0852. The next key resistance that could stop the Euro bulls is 1.0916, the high of June 2024.

According to experts, if the EUR/USD can successfully break the 1.0916 level, it means the next target will be 1.0981, the high from March 2024. After that, the next key resistance will be 1.0998 and then the round figure of 1.1000.

So far, the EUR/USD H4 chart shows that the bulls are under pressure while the bears are slowly taking the upper hand. The nearest resistance on the H4 chart is present at 1.0776 and then 1.0794. Similarly, the nearest support is present at 1.0666 followed by the next levels at 1.0649 and then 1.0601.

Although the USD is a little bit positive, it is still under pressure after the dovish comments from the Fed Powell. That's why the DXY is still hovering near 10580 with eyes set on the ADP and NFP employment numbers.

While we are looking at the implications of ADP and NFP report, another key risk element for the EUR/USD is the elections in the USA and the France.

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