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EUR/USD Analysis for 3rd June

  • EUR/USD adds to Tuesday's weakness below the 1.2200 mark.
  • The next support of note emerges around 1.2130.

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EUR/USD has extended its falls to 1.2150 after ADP's jobs report smashed estimates with 978K, jobless claims dropped to 385K and the ISM Services PMIs exceeded forecasts with 64 points. Growing speculation about Fed tapering is also supporting the dollar.

EUR/USD adds to Wednesday's losses and re-visits the 1.2180/75 band on Thursday.The continuation of the downtrend looks likely while below the short-term resistance line (off March lows) near 1.2220 and does not face any support of relevance until last week's lows in the 1.2130 zone (May 28).

On the broader view, the constructive stance on EUR/USD is forecast to remain intact as long as it trades above, 1.1978.The ongoing correction follows the recent bearish divergence in the MACD which hints the bearish move.

The material has been provided by InstaForex Company - www.instaforex.com