EUR/USD Reverses Losses, Climbs to 1.1572 Ahead of US ADP Report
EUR/USD has shaken off earlier declines and traded up to 1.1572, rebounding from a low of 1.1545. The pair remains confined to recent ranges as markets cheer the end of the U.S. government shutdown and shrug off a softer-than-expected German ZEW survey.
- German ZEW Survey
– Economic Sentiment fell to 38.5 in November (vs. 40.0 expected, 39.3 prior)
– Current Conditions rose to –78.7 (vs. –77.5 expected, –80.0 prior)
– Eurozone Sentiment beat forecasts - US Government Shutdown Deal
– Senate approved funding bill to reopen government after 35 days
– Bill moves to the House and is on track for presidential signature
Market participants are now watching today’s US ADP four-week employment change reading, while keeping an eye on the final passage of the funding measure.
Daily Digest – Dollar Edges Up, EUR/USD Rangebound
News of the bipartisan funding deal has given the dollar a modest lift against its peers. At the same time, improved market sentiment has buoyed risk-sensitive currencies like the euro, leaving EUR/USD stuck in a sideways pattern.
ECB’s Martin Kocher (Austrian National Bank Governor) said policy settings are “in a good place” with no near-term adjustments needed, offering some support to the euro.
In the U.S., traders will parse ADP’s employment figures after last week’s surprising 42k payroll gain. Fed speakers remain divided: Governor Stephen Miran favors additional rate cuts, while Presidents James Bullard and Mary Daly have adopted a more cautious tone.
On the 4-hour chart, EUR/USD is consolidating after rebounding from last week’s 1.1470 low. Upward moves have stalled around 1.1580, while downside pressure is finding support above 1.1540. The 4-hour RSI sits near 50, underscoring a neutral bias.
A break above 1.1580–1.1590 (the highs of November 7 and 10) would shift focus to the next resistance at 1.1615, where the October 27 low intersects an early-October downtrend line. Beyond that, the October 28–29 peaks near 1.1670 become the target.
On the downside, the 1.1530–1.1540 zone (the lows of November 7 and 10) is providing initial support. A drop below here would expose the 1.1500 psychological level, with stronger support waiting at last week’s low around 1.1470.