EUR/USD recovery fizzles near 1.1385 ahead of US ADP, ISM

• Consolidating the recovery, as the bulls take a back seat.
• Downbeat US macro data could drive EUR/USD back above 1.14 handle.

The recovery in the EUR/USD pair from the flash crash lows of 1.1310 faltered in the upper bound of the 1.13 handle, as the bulls take a breather before the next push higher.

The spot is seen paring back the recovery gains, now consolidating in the familiar range near 1.1370 region, as the renewed uptick in the USD/JPY pair appears to offer a fresh sign of life in the US dollar against its major rivals.

However, the recovery in the greenback looks short-lived amid an extension of the declines in the US equity futures and Treasury yields, which may eventually send the EUR/USD pair back above the 1.14 handle.    

Further, a below estimates US ADP jobs report combined with a dip in the US ISM manufacturing PMI reading could accentuate the dollar’s downside, triggering a fresh buying wave around the spot, as the buck remains the exclusive driver for the major so far this Thursday.

EUR/USD Technical Levels