EUR/USD firmer around 1.1770 ahead of PMIs, ADP

The selling bias has intensified around the greenback on Wednesday and is now helping EUR/USD to advance to the 1.1770/80 band ahead of the opening bell in Euroland.

EUR/USD supported near 1.1690

The pair is now extending the upside for the second day in a row, managing to revert yesterday’s multi-week lows in the vicinity of 1.1690 and gaining around a cent since then.

The renewed weakness around the greenback resurfaced after odds for (somewhat dovish) FOMC’s J.Powell to be the next Fed Chief rose on Tuesday following the publication of a shortlist of candidates by the Federal Reserve.

In addition, yields of the US 10-year reference continues to correct lower from Monday’s tops above 2.37%, narrowing the spread vs. their German peers and thus collaborating with the up move in spot.

In the data space, final services PMI for the month of September are due in the euro area, seconded by EMU’s retail sales and the speech by ECB’s M.Draghi later in the evening.

Across the pond, the ADP report is due followed by the ISM non-manufacturing and speeches by St. Louis Fed J.Bullard (2019 voter, dovish) and Chairwoman J.Yellen.

EUR/USD levels to watch

At the moment, the pair is up 0.20% at 1.1768 facing the next up barrier at 1.1813 (10-day sma) followed by 1.1831 (55-day sma) and finally 1.1886 (21-day sma). On the flip side, a break below 1.1696 (low Oct.3) would target 1.1662 (low Aug.17) en route to 1.1584 (100-day sma).