EUR/USD probing tops around 1.20 ahead of ADP, FOMC

• The pair bounces off lows and is now testing the 1.2000 region.
• USD slightly offered although remains above the 92.00 level.
• Final PMIs in Euroland are next on tap. ADP, FOMC next in the US docket.

The now softer tone around the greenback is helping EUR/USD to re-test the critical 1.2000 neighbourhood after recording fresh multi-month lows near 1.1980 on Tuesday.

EUR/USD looks to data, FOMC

The decline in spot appears to be taking a breather today after some contention emerged in the 1.1985/80 band yesterday, or fresh 4-month lows. It is worth mentioning that the pair managed to break below the multi-month 1.2155-1.2555 range with some conviction following the sharp rebound in the buck.

The solid demand for the greenback and robust performance in yields in the US money markets on the USD-side, while poor results in the euro area and a cautious ECB on the EUR-complex have been weighing on the pair as of late, sparking a 4-cent decline from April’s tops beyond 1.24 the figure.

Looking ahead, final manufacturing PMIs are due later in Euroland along with advanced Q1 GDP figures in the euro region. Across the pond, the ADP report is coming up next preceding the FOMC meeting later in the NA session.

EUR/USD levels to watch

At the moment, the pair is gaining 0.08% at 1.2003 facing the next hurdle at 1.2155 (10-day sma) followed by 1.2210 (high Apr.26) and finally 1.2246 (21-day sma). On the flip side, a break below 1.1982 (low May 1) would target 1.1916 (2018 low Jan.19) en route to 1.1718 (monthly low Dec.12 2017).