Economic events that can move EUR/USD today…
- US ADP Non-Farm Employment Change
- US Manufacturing PMI (Performance of Manufacturing Index)
- Federal Open Market Committee (FOMC) Statement
EUR/USD is back to its comfort zone around 1.2300 of July 18, which is also a support level from May 31, after hitting the highly anticipated levels shy of 1.2040 last week. It is now trading between 1.2279 and 1.2335, up 10 pips.
Poor PMI prints in Germany and the EU during the month of July have depressed the sentiment surrounding the EUR today. Later in the day, US data will be dominating the headlines. First will be the ADP Employment data which is a precursor to Friday’s Non-Farm Payrolls number, followed by the afternoon’s FOMC Statement.
EUR/USD is back to the resistance level in the 1.23 area, trading well below the Ichimoku cloud, hinting that this rally may not be long lasting.
The SSI (Speculative Sentiment Index) saw the gains coming yesterday. 53% of FXCM traders were short the euro yesterday. As a contrarian indicator, the SSI signaled the short-term gains on EUR/USD. Today, the volatility has reached 54%.