Article by ForexTime
EUR/USD ran into strong resistance and robust selling interest above 1.0940 following a run higher in early European trade. A high was left at 1.0943 with the pair having dipped back to the 1.0910-15 area. A run higher during the Asia session was similarly rejected, with the overall bias to remain to the downside into tomorrow’s U.S. payrolls report.
The weak ADP data was also offset by the ISM-NMI surge with its component pop in the employment gauge to a ten-year high of 59.6, and many analysts continue to expect 215k July nonfarm payroll rise on Friday. EUR/USD focus is on the early July low at 1.0808, which is the lowest traded since late April. Resistance is at 1.0958-90, which coincides the 20-day moving average.
On Wednesday the ISM released a much stronger than expected services report, which offset the weakness in the ADP payroll report which showed that job gains in the private sector only increased by 185K compared to the 215K expected.
The July U.S. ISM-NMI rose to 60.3 compared to the consensus estimate of 56.0. Business activity rose to 64.9 from 61.5. New orders rose to 63.8 from 58.3. The employment component rose to 59.6 from 52.7.Order backlogs rose to 54.0 from 50.5.
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