The greenback hit a roadblock after a string of softer-than-expected data on Wednesday. The ISM service PMI gives a 56.1 vs a consensus of 58, the lowest level in 20 months. The ADP employment figure, often considered a proxy for nonfarm payrolls, came out short as well, raising concerns that the US economy may be facing stronger headwinds. Markets will wait for this Friday’s job data to direct the dollar’s near term direction.
On the technical side, EURUSD has found solid buying interest near the 1.1180 support line. Bulls may target the next resistance near the moving averages. 1.1215 is the immediate support in case of a pullback.
The sentiment-price correlation chart shows the sentiment rising back towards the neutral line. Daily news sentiment is moving higher and in 50% of the last 10 occurrences price has risen within 6 days.