EUR/USD stuck above 1.1200 ahead of ADP

The common currency is clinging to its daily gains vs. the greenback on Wednesday, with EUR/USD now sidelined in the 1.1220 area.

EUR/USD now looks to ADP

The pair is posting decent gains so far today following two consecutive sessions with losses, as the sentiment around the greenback seems to have ebbed somewhat after the positive start of the week.

In fact, market participants seem to have decided to cash up part of the recent strong gains in USD, recently intensified by swelling speculations on a Fed’s rate hike at the December meeting and auspicious results from the US docket.

Back to Euroland, September final Services PMI showed strong prints in Germany and the euro area, while French, Italian and Spanish readings have all come in below expectations.

Ahead in the session, all eyes are set on the US ADP report, which is expected to show the private sector adding 166K jobs during last month. Further releases across the pond include Factory Orders, Trade Balance and Markit’s Services PMI.

Regarding positioning, it is worth mentioning that speculative EUR longs have climbed to 4-week highs during the week ended on September 27, prompting net shorts to scale back to levels last seen in late August.

EUR/USD levels to watch

The pair is now up 0.16% at 1.1222 and a break above 1.1268 (resistance line off 2016 high) would target 1.1279 (high Sep.26) en route to 1.1329 (high Sep.8). On the other hand, the next support aligns at 1.1165 (200-day sma) followed by 1.1097 (2014-2016 support line) and then 1.1043 (low Aug.5).