EUR/USD holds below 1.0560 after ADP and Treasury refunding

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• ADP: US private payrolls rose by 113,000 in October, up from 89,000 in September.
• US Yields drop after Treasury refunding announcement; 10-year slides to 4.83%.
• EUR/USD consolidates around 1.0550 amid a mixed US Dollar ahead of the FOMC decision.

The EUR/USD pair reached a bottom at 1.0540, the lowest level in three days, and bounced to 1.0557 following the release of the ADP employment report and the Treasury refunding announcement. Currently, the pair is hovering around 1.0550, holding onto daily losses as markets await the FOMC decision.

The ADP employment report showed an increase in private payrolls of 113,000 in October, below the market consensus of 150,000 but above the unrevised figure of 89,000 recorded in September. The report did not trigger significant market actions. More US data is due on Wednesday, with the ISM Manufacturing PMI at 14:00 GMT.

The US Treasury Department has released its plan for debt auctions, which includes gradually increasing the size of most auctions from November 2023 to January 2024. Treasury yields declined after the announcement, putting pressure on the US Dollar, particularly against commodity currencies.

The US Dollar Index is still up by 0.10%, primarily due to the decline in EUR/USD. The Euro is underperforming on Wednesday, also falling against the Pound, Swiss Franc, and Yen.

Later in the day, the Federal Reserve (Fed) will announce its decision on monetary policy. No change in interest rates is expected. Following the statement at 18:00 GMT, Fed Chair Jerome Powell will hold a press conference.

US Interest Rate Decision Preview: Federal Reserve expected to stand pat for second consecutive meeting

Levels to watch

Below the daily lows, the next support for EUR/USD emerges at 1.0520, last week’s low, followed by 1.0493 (Oct 13 low). The short-term bias is currently tilted to the downside. Immediate resistance can be seen at 1.0565. For a reversal of the negative bias, the Euro would need to rise above the 1.0590 area, surpassing key Simple Moving Averages (SMA) on the 4-hour chart.

EUR/USD 4-hour 

Technical levels