EUR/USD – 50% of the drop in October has been retraced

The sharp rise over the last three days has seen the pair take back 50% of the losses seen in October. At the time of writing, the EUR/USD pair was trading above 1.1049 (50% of Oct 3 high and Oct 25 low).

Eyes German data, US ADP and Fed decision

The immediate focus is on the release of the PMI manufacturing indices across the Eurozone and German employment data. Later in the day, US ADP could affect the overall demand for the US dollars. The data is likely to show the private sector added 165K jobs in October.

However, the main event for the day is the FOMC rate decision. It remains to be seen if the Fed stays non-committal despite strong economy or stays non-committal due to heightened US election uncertainty.

EUR/USD Technical Levels

The pair was last seen trading around 1.1065. A break above the previous session high of 1.1069 would expose 1.1095 (61.8% fib retracement). A violation there could see the spot target 1.1127 (50-DMA). On the other hand, a breakdown of support at 1.1049 (50% fib) would open doors for a sell-off to 1.1027 (Oct 18 high) and 1.10 (psychological level).