EUR/USD trades below key 127.2% Fib extension level

The EUR/USD pair is sitting below the 1.0427, which is 127.2% Fibo expansion level of the move from July 2008 high to Oct 2008 low to Nov 2009 high. 

Trapped between 100% expansion & 127.2% expansion level

When viewed on a larger scheme of things, the EUR/USD pair looks trapped between 1.1436 (100% Fib expansion) and 1.0427 (127.2% Fib expansion). The range has remained intact since March 2015. 

Focus on ADP data

As for today, the focus is on the Us ADP report, which is expected to show the private sector added 173K jobs in December. The data could move the FX markets. 

Meanwhile, the Fed minutes due later in the day are unlikely to offer anything different than what we already heard last month. 

EUR/USD Technical Levels

The spot was last seen trading around 1.0405. A break below 1.05 (zero figure) could see the spot revisit previous day’s low of 1.0340, under which the psychological level of 1.03 could be put to test. On the other hand, a break above 1.0427 (127.2% Fib expansion) would open the door to 1.0463 (Mar 2015 low) and then to 1.05 (zero figure).