EUR/USD fails ahead of 1.18 handle, up next US ISM PMI

The EUR/USD pair faded post-ADP report bullish spike and retreated around 30-pips from session tops near the 1.1790 region.

The pair stalled its tepid recovery move from previous session's 7-week lows and quickly dropped to the 1.1760-55 region amid a modest US Dollar uptick, supported by slightly better-than-expected private sector employment data. 

   •  US: Private Sector Employment Increased by 135,000 Jobs in September - ADP

The fact that Hurricane Harvey and Irma had a significant impact on the job market, today’s stronger report helped the US Treasury bond yields to pare some of its early steep losses and eventually extended some support to the greenback.

Today's US economic docket also features the release of ISM non-manufacturing PMI, which would be looked upon to grab some short-term trading opportunities ahead of the key speeches by the ECB President Mario Draghi and the Fed Chair Janet Yellen.

Technical outlook

"Disappointing numbers coming out the US could see the pair advancing up to the 1.1820/30 region, a former tough support, with limited chances of breaking above it ahead of the NFP report on Friday. To the downside, the key is still 1.1720, as renewed selling pressure below it should open doors for a steeper decline towards 1.1660" notes Valeria Bednarik, Chief Analyst at FXStreet.