The Euro pushes back lower as investors bid up their U.S Dollar positions following a strong ADP job report. Yesterday, the greenback pushed higher after the ADP Non Farm Employment Change figure printed at 230k compared to the expected 187k. The continuously strong economic data from the U.S supports the Federal Reserve's willingness to maintain their plan to hike rates gradually. The strengthening U.S Dollar is not the only bearish driver of the Euro as the political and economic issues related to Italy's budget plan remains in place. For today, the currency will be mainly driven by any developments related to Italy's budget plan given that U.S Dollar speculators will await tomorrow's NFP report before making any bet related to the U.S Dollar.
The Euro tests the 1.15040 support level for the second time and breaks the level. The break below the 1.15040 support level exposes the 1.14337 level. Adding to the bearish momentum, the 50-period moving average just crossed below the 200-period moving average.
Support: 1.15040 1.14337
Resistance: 1.15939 1.16137