EUR/USD: eyes for a test of key 1.1720

Currently, EUR/USD is trading at 1.1761, up 0.15% on the day, having posted a daily high at 1.1788 and low at 1.1735.

EUR/USD has been quiet in NY trade with traders holding out for remarks from Draghi and Yellen that so far have not materialised. Instead, the September ADP report indicated that the private sector added 135K new jobs in September, beating expectations of 125K while the ISM non-manufacturing PMI reached its highest reading since August 2005 this last September, up to 59.8 from previous 55.3.

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The greenback has been equally as steady with a lack of impetus as we await this week's nonfarm payrolls as the key driver while otherwise there has been some downside priced in due to implications of Yellen being replaced at the end of her term. 

EUR/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the overall stance continues to be bearish, as an intraday advance, up to 1.1787 was quickly rejected. 

"In the 4 hours chart," she added, "the price has spent most of this last session hovering around a modestly bearish 20 SMA, whilst technical indicators have extended their advances up to their mid-lines, where they currently stand without directional momentum. The key support remains to be 1.1720, where it bottomed last week, with scope then to extend its decline down to 1.1661, August low, on a break below it. To the upside, selling interest is aligned around 1.1820/30, and seems unlikely the pair could break above the level during the upcoming sessions and ahead of the mentioned US employment report."