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EUR/USD recovered the 1.1800 level and is now pressuring daily highs at 1.1880 after the US ADP employment survey printed at 167K in July, much worse than anticipated. The pair en route to test the 1.2000 figure on broad dollar’s weakness, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The US just published the ADP Employment Survey, which printed just 167K, much worse than the 1.5 million expected. Equities pared their rally, but the dollar remained under pressure across the board. Still pending of release are the final version of the July Markit Services PMI  and the official ISM Non-Manufacturing PMI for the same month.”

“In the 4-hour chart, the price has overcome its 20 SMA, which remains flat, although technical indicators head firmly higher within positive levels, somehow anticipating additional gains ahead.” 

“The key is 1.1908, the multi-year high set this month. Gains beyond the level should see the EUR/USD pair approaching the 1.2000 figure in the upcoming sessions.”