EUR/USD struggles for direction near 1.1620 ahead of ADP, ISM

• The index trades within familiar ranges above the 1.1600 handle.
• The greenback alternates gains with losses above 95.00.
• US ADP report, ISM non-manufacturing next of relevance in the docket.

EUR/USD remains sidelined so far today, navigating the 1.1620 area after hitting fresh tops in the 1.1650/55 band during early trade.

EUR/USD now looks to US calendar

The pair is now managing well to keep business above 1.1600 the figure following recent lows in the 1.1540 region, which emerges as initial contention and coincident with the 21-day SMA.

In the meantime, cautiousness prevails amongst investors in light of developments from the EM FX universe, US politics and the omnipresent trade jitters on the US-China front. In addition, Italian headlines with the budget in centre stage offered some respite for the time being despite the issue remains far from solved.

Auspicious Brexit headlines during the European evening on Wednesday gave fresh wings to the riskier assets and pushed spot to the mid-1.1600s, where sellers turned up once again.

Later in the NA session, the ADP report will grab initial attention followed by the ISM non-manufacturing. Additionally, the usual weekly report on the labour market is due as well as July’s Factory Orders and Durable Goods Orders.

EUR/USD levels to watch

At the moment, the pair is losing 0.07% at 1.1623 and a break below 1.1508 (low May 29) would target 1.1449 (50% Fibo of the 2017-2018 up move) and finally 1.1299 (2018 low Aug.15). On the flip side, the next hurdle aligns at 1.1659 (high Sep.6) seconded by 1.1734 (high Aug.28) and finally 1.1745 (high Jul.31).