Euro rallies after downbeat US ADP jobs report
The Euro accelerate higher on Wednesday after soft US data deflated dollar. The ADP report showed that US private sector added 374K new jobs in August, compared to expectations for 613K and July’s figure, downwardly revised from 330K to 326K.
Downbeat ADP report, which is often used as an indication for more significant government’s jobs report (due on Friday), fades expectations for strong non-farm payroll report (Aug f/c 750K vs 943K in July) and also cools down expectations for Fed’s early action.
Fresh strength penetrated thick daily cloud (base lays at 1.1832), with close within the cloud to confirm bullish signal and open way for extension towards key barriers at 1.1900 zone (Fibo 38.2% of 1.2266/1.1664 descend / July 30 high) violation of which would confirm reversal signal.
Daily studies maintain strong bullish momentum with additional positive signal seen on formation of 10/20DMA’s bull cross.
Broken Fibo support at 1.1806 reverted to solid support which is expected to keep the downside protected and maintain bullish bias
Res: 1.1857; 1.1894; 1.1908; 1.1954
Sup: 1.1832; 1.1806; 1.1782; 1.1763