ADP Data Plunges EUR/USD From $1.0900 Level!

<p>&nbsp;As expected, the price movement was brisk yesterday, especially in the New York session which was embroidered with some important data involving the economy of the United States (US).</p><p><br /></p><p>The data reading of US unemployment claims (unemployment claims) and the opening of JOLTS job offers show that the reading is less than satisfactory.</p><p><br /></p><p>However, the more important data saw US private sector job growth (ADP) jump to 497,000 in June giving a positive initial signal for the NFP employment data which will also be in focus today (Friday).</p><p><br /></p><p>In addition, the ISM survey data of the US service sector also came out with figures that rose above forecasts showing positive expansion for the important sector.</p><p><br /></p><p>The US dollar yesterday showed drastic movements with price fluctuations in a large range with different effects compared to several major currencies including commodities.</p><p><br /></p><p><br /></p><p><br /></p><p>On the price chart of the EUR/USD currency pair, a daily movement range of around 60 pips is noted with active price movement seen in the New York session.</p><p><br /></p><p>Since the European session, the US dollar has moved weakly, showing that the price has increased from the level of 1.08340 to a height of 1.09000.</p><p><br /></p><p>But the re-strengthening in the New York session saw the price pushed back down to its original low level before that.</p><p><br /></p><p><br /></p><p>However, the decline was seen not to continue as the price bounced back up to close the end of the session trading around 1.08870.</p><p><br /></p><p>The price moving back above the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart signals that it is still difficult for the price to extend the decline lower.</p><p><br /></p><p>Investors are now looking forward to the US NFP jobs report as the closing of the trading curtain this week with the expectation that aggressive price movements will be exhibited.</p><p><br /></p><p>If the price rises above the 1.09000 zone, the price increase can continue until it reaches the 1.10000 target.</p><p><br /></p><p>The price also has the potential to record the latest 9-week high if the high is successfully overcome.</p><p><br /></p><p>However, if the price breaks below the MA50 support, the price is likely to surpass the level reached yesterday before heading to the latest low again this week.</p><p><br /></p><p>The 1.08000 zone is the main focus to be tested and investors will evaluate the price reaction in that zone for further price movement indicators.</p>