EUR/USD drops further on upbeat ADP, 1.19 closer

The selling pressure around the European currency is now gathering extra traction, dragging EUR/USD to fresh lows closer to the 1.1900 handle.

EUR/USD weaker post-ADP, looks to GDP

Spot remains under heavy downside pressure after US ADP report showed the private sector created 237K jobs during August, surpassing initial estimates and coming up from July’s 201K jobs (revised from 178K).

The greenback in the meantime keeps the recovery well and sound in the wake of the release, now lifting the US Dollar Index (DXY) to the area of session tops in the 92.60/65 band, prolonging the bounce off yesterday’s fresh cycle lows near 91.60

Later in the session, the greenback should stay in centre stage in light of the publication of another revision of US Q2 GDP followed by the speech by FOMC’s J.Powell (permanent voter, centrist).

EUR/USD levels to watch

At the moment, the pair is losing 0.41% at 1.1923 facing the immediate support at 1.1915 (low Aug.30) followed by 1.1851 (10-day sma) and then 1.1818 (21-day sma). On the flip side, a break above 1.2069 (2017 high Aug.29) would open the door to 1.2167 (50% Fibo of the 2014-2017 drop) and finally 1.2186 (high Dec 25 2014).