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EUR/USD extends the rebound above 1.2050, with looks on the US ADP.

After a temporary correction seen the previous day, bulls resumed control on Thursday, pushing EUR / USD higher, in an attempt to test the 2017 high at 1.2092.

EUR/USD: FOMC minutes lead USD movement

Having found a solid support just ahead of the 1.2000 level on multiple occasions, the EUR / USD pair is extending its solid rebound above 1.2050, as a new sale of the generalized USD returns to the market before the macroeconomic publications of the United States. United. The US dollar index (DXY) falls -0.27% to trade near daily lows at 91.93, ignoring the uptick in yields on Treasuries.

In addition, the impressive growth numbers of the euro zone services reinforced the optimistic outlook for the economy of the 19-nation bloc, further boosting the demand for the euro against its US rival. Services PMI data showed that the eurozone was close to its best growth in seven years, while the growth of services in Italy and Spain exceeded previous flash estimates.

With the eurozone data already past, "now, market attention is focused on the next US employment data, starting today with the ADP survey and the weekly jobless claims, before the monthly payroll report is not This Friday, "says Valeria Bednarik, chief analyst at FXStreet.

EUR/USD Outlook

Slobodan Drvenica, Manager of Information and Analysis at Windsor Brokers Ltd, writes: "Initial support at 1.2000 holds for the third day, after Wednesday's close in red, keeping the focus immediately up, as the underlying uptrend remains intact. However, a deeper correction can not be ruled out since the Slow Stochastic is rotating from the overbought territory.The break below the level of1.2000 would expose the next strong supports at 1.1961 / 50 (previous high of November 27 / 38.2 % of the Fibonacci retracement of the bullish movement of 1.1737-1.2081, reinforced by a bullish 10-period moving average) which is expected to maintain prolonged drops ".

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