The euro-dollar is weakening intraday amid the ADP non-farm payrolls report, suggesting that the United States added 280,000 jobs in May. The dollar reacted positively to the data, bouncing off of multi-session lows. The euro was consolidating after the final gross domestic report shows that the eurozone’s growth continues to be anemic, growing only .2 percent.
Central banker speeches are in focus, too. Federal Reserve Chairwomen Janet Yellen will speak at the International Monetary Fund (IMF) in Washington D.C. today, while European Central Bank (ECB) President Mario Draghi will follow the ECB’s interest rate decision with a press conference. With growth nearly absent, it is likely Draghi will remain dovish on monetary policy while strengthening the case for additional easing as needed.
EURUSD failed to establish movement above 1.3700, and price action began to breakdown while trending with a bearish wedge pattern. The US data triggers a quick sell-off through the wedge and broke through intraday support at 1.3660 and 1.3650.
A close back above 1.3650 could allow some support to foster demand, while a close could signal a further more down to the 1H 200 EMA. The downside momentum going into the US trading session is strengthening.
The 20/50 EMA bearish crossover will provide support for technical selling into the 200 EMA.