EUR/USD approaches daily lows near 1.1600 on ADP

• US ADP surprised to the upside in October.
• Spot eased further ground as US yields rebound.
• US ISM and FOMC meeting next on tap.

The offered bias around the European currency has picked up extra pace today following the release of US ADP report, sending EUR/USD to fresh lows closer to the 1.1600 handle.

EUR/USD weaker on ADP

Spot met extra downside pressure after the ADP report showed the US private sector added 235K jobs during October, surpassing initial estimates at 200K jobs.

Adding to the pair’s downside, yields of the US 10-year benchmark briefly tested fresh tops beyond the 2.40% handle, lending extra legs to the buck and lifting the US Dollar Index (DXY) to fresh tops near 94.80.

Later in the session, the pair is expected to remain under pressure in light of the publication of the ISM manufacturing and the FOMC meeting, which is expected to leave the Fed Funds unchanged.

EUR/USD levels to watch

At the moment, the pair is losing 0.21% at 1.1622 and a breakdown of 1.1575 (low Oct.27) would open the door to 1.1448 (high Jun.30) and finally 1.1258 (200-day sma). On the other hand, the next up barrier lines up at 1.1658 (high Oct.30) seconded by 1.1692 (100-day sma) and then 1.1714 (10-day sma).