EUR/USD came under selling pressure after testing multi-week highs near 1.0970 on Wednesday, as the US dollar rebounded slightly. The currency pair had gained traction earlier in the American session, climbing above 1.0950 following the release of private sector employment data by ADP, which showed an increase of 145K jobs in March, below the market expectation of 200K.
Despite the initial gains, the EUR/USD pair faced selling pressure as it approached the 1.0970 level. The next resistance level on the upside is the 2023 high at 1.1032.
The move higher in the EUR/USD pair reflects the overall weakness of the US dollar, which has been under pressure due to a combination of factors, including concerns about the US economy and the Federal Reserve’s policy stance. However, the pair has also faced resistance at higher levels, indicating that traders are still cautious about pushing it too far.
As the market continues to monitor economic data releases and the Fed’s policy decisions, the EUR/USD pair is likely to remain volatile in the short term. Traders will be watching for any signs of weakness in the US economy, which could lead to further weakness in the dollar and a move higher in the EUR/USD pair.
In conclusion, the EUR/USD pair faced selling pressure after testing multi-week highs near 1.0970 on Wednesday. The next resistance level on the upside is the 2023 high at 1.1032. The pair’s movement reflects the overall weakness of the US dollar, but traders remain cautious about pushing it too far. As the market continues to monitor economic data and the Fed’s policy decisions, the pair is likely to remain volatile in the short term.
