EUR/USD: the bears are not done yet, making fresh lows at 1.0882

Currently, EUR/USD is trading at 1.0886, up 0.02% on the day, having posted a daily high at 1.0891 and low at 1.0883.

EUR/USD made fresh lows as the dollar continues to flex its muscles after a day of better performance from the US calendar. At the same time, the FOMC was hawkish enough without any surprises one way or the other for markets to expect a rate hike in June. 

Forex today: US data and FOMC firm up the DXY closing higher by +0.32%

In respect of data, the US ADP employment rose 177k (vs 175k expected), which underpins the basis for a healthy gain in Friday’s payrolls report. ISM non-manufacturing was also a plus and big bat that rose from 55.2 to 57.5 (vs 55.8 expected). 

The French debate was lively, at times even more like a boxing match. Macron, a candidate of "buying up and carving up France" as Le Pen called him as being a former banker, didn't need to fight the maverick like Le Pen due to such a large lead of 20% in the polls, but all in all, it is doubtful that the debate swayed the polls one way or the other and the euro was steady throughout. However, it is not game over yet, and we have seen the underdogs triumphant in Brexit and Trump already, so a lesson learned there. Te one thing that goes in Le Pen's favour is the abstention who would have otherwise voted for the other parties.

EUR/USD levels

From a technical point of view, Valeria Bednarik, chief analyst at FXStreet explained that the pair retains a neutral stance, given that in the 4 hours chart, the price continues hovering around a directionless 20 SMA, whilst technical indicators head nowhere within neutral territory. "The pair needs to clearly break either above 1.0950, or below 1.0820, to gather some directional momentum that could persist into the following sessions."