EUR/USD in 4-day highs near 1.0560, ECB, ADP eyed

The generalized selling bias surrounding the US dollar has given extra legs to EUR/USD, managing to advance to multi-day tops in the 1.0560 area.

EUR/USD looks to ECB, ADP

Spot has picked up further pace after the FOMC minutes on Wednesday showed the Committee is concerned over the considerable uncertainty surrounding the probable policies under a Trump administration, especially on the fiscal side.

In fact, despite the somewhat hawkish tone from the minutes, the greenback failed to extend its rally, shedding instead further ground across the board, hurting US yields and the Dollar Index as a consequence.

Later in Euroland, the ECB will publish its Accounts from the last meeting, with the bond-buying programme in the centre of the debate in light of the measures announced by the central bank back in December.

Across the pond, the ADP report (170K exp.) and the ISM Non-manufacturing (56.6 exp.) will be the salient releases ahead of Friday’s Non-farm Payrolls (175K exp.).

EUR/USD levels to watch

The pair is now up 0.59% at 1.0550 and a breakout of 1.0575 (high Jan.5) would target 1.0654 (spike Dec.30) en route to 1.0681 (55-day sma). On the downside, the immediate support aligns at 1.0478 (20-day sma) followed by 1.0387 (low Jan.4) and finally 1.0350 (2016 low Dec.20).