EUR/USD steady despite lower than expected ADP report

On Wednesday, EUR/USD saw a slight retracement from its initial move to 1.0970. Despite this, the Final Services PMIs in Germany and the Eurozone remained strong in March. The US ADP report came in lower than expected at 145K jobs, down from February's 261K jobs. As a result, EUR/USD experienced some gains and losses around the 1.0950 level.

Initial resistance for EUR/USD can be found in the 1.0970/80 range, with the currency pair exhibiting a cautious note and showing fluctuations around the 1.0950 area. While hawkish comments from ECB policymakers and healthy prints from Services PMIs in the Eurozone supported the euro, the markets' prudence ahead of the NFP figures on Friday limited the bulls.

For the EUR, market participants should keep an eye out for potential tests of the 1.1000 level, as the currency pair continues its weekly rally. The euro's price action will likely be influenced by the direction of the US dollar and the divergence between the Fed and ECB's plans regarding interest rate moves.

Furthermore, while hawkish ECB-speak supports further rate hikes, some loss of momentum in economic fundamentals in the region contradicts this view.

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The AB=CD pattern saw a reversal at the D point, with a retest of the 50% Fibo retracement CD. In my opinion, the price will continue to rise in line with the main trend and the direction of the Dynamic Bullish channel.