EUR/USD holds closer to 4-month tops despite stellar ADP report

   •  US private sector employers add 250K jobs during December.
   •  Upbeat data fails to provide any meaningful lift to the USD.
   •  Friday’s EZ CPI and headline NFP figure to provide fresh impetus.

The EUR/USD pair continued with its struggle to break through the 1.2070-80 supply zone and quickly retreated few pips post-ADP report. 

The US Dollar selling pressure eased a bit, at least for the time being, and capped any additional gains for the pair after the latest ADP report showed private-sector employers added 250K new jobs in the final month of 2017. 

The reading surpassed even the most optimistic estimates and bettered last month's reading of 190K, providing a much-needed respite for the USD bulls. 

Despite a modest pull-back, the pair remains within striking distance of near 4-month tops as investors refrained from placing any aggressive bearish bets ahead of Friday's flash EZ CPI print and the keenly watched US monthly jobs report (NFP).

Technical levels to watch

Bulls would be eyeing for a clear breakthrough 1.2080 level, above which the pair is likely to surpass the 1.2100 handle and aim towards testing 1.2165 horizontal resistance. On the flip side, any meaningful retracement now seems to find immediate support near the 1.2040 level and is followed by the key 1.20 psychological support.