EURUSD rebounds ahead of ADP
The market expects a strong reading of the ADP report and EURUSD is rebounding after yesterday’s strong declines
The market is getting ready for a strong reading of the ADP report, as expectations point to 550k employment growth for March against the previous increase of 117k. If the reading meets expectations, it will be the highest employment growth since September last year. Despite these strong expectations, today we see a slightly weaker dollar and the EURUSD pair moves slightly higher. However, this is a rebound after yesterday’s strong sell-off, which was related to the rise in US yields, which rose to almost 1.8%. ADP will be published at 1:15 PM GMT.
EURUSD is currently testing major resistance in the form of a downward trend line. Next resistance is located at 1.1750, and is strengthened by the 78.6 Fibonacci retracement of the entire upward move which occurred during Q4.