EUR/USD retakes 1.0500 and beyond on ADP

EUR/USD has reverted the earlier drop to the 1.0480 region and is now regaing the 1.0500 handle and above.

EUR/USD bid post-ADP

Spot gathered some traction after US ADP report showed the private sector has created 153K jobs during December, missing forecasts for a 170K gain and down from November’s 215K (revised from 216K).

Further data from the US labour market saw Initial Claims rising to 235K WoW, bettering estimates and taking the 4-Week Average to 256.75K from 262.50K, while Challenger Job Cuts rose to 33.6K in December from 26.9K.

The recovery in the greenback has run out steam around the 102.50 area when tracked by the US Dollar Index, receding to the current 102.15/10 band following the results in the US calendar.

Later in the NA session, Markit’s Services PMI and the ISM Non-manufacturing will take centre stage.

EUR/USD levels to watch

The pair is now up 0.37% at 1.0527 and a breakout of 1.0575 (high Jan.5) would target 1.0654 (spike Dec.30) en route to 1.0681 (55-day sma). On the downside, the immediate support aligns at 1.0478 (20-day sma) followed by 1.0387 (low Jan.4) and finally 1.0350 (2016 low Dec.20).