FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted that the dollar gathered some pace against its rivals on Wednesday, following the release of the strongest ADP reading in almost 2 years, up to 281K.
“The EUR/USD which was already under pressure after failing around 1.3700, extended its decline to post a daily low of 1.3640 before halting, finally closing the day below its 200 DMA again”.
“If it weren’t because of ECB and US Payrolls on Thursday, the pair should continue falling over the upcoming sessions according to technical readings, yet both are consider game changers so cautious should prevail until the releases”.
“Nevertheless and from a technical point of view, the hourly chart shows indicators in negative territory and price developing below 20 and 100 SMAs, showing no directional strength”.
“In the 4 hours chart price stands below 20 SMA while indicators hover around their midlines, having erased early week overbought conditions. Ahead of the news, critical levels to watch are recent highs of 1.3700 to the upside and 1.3570 to the downside, as a break of any extreme should lead to a continued move”.